Cording Real Estate Group’s UK private rented sector fund has bought its third asset.

The Cording UK Residential Investment Fund, which invests on behalf of Continental European investors, has agreed to forward fund a build-to-rent (BTR) development in the Lace Market area of Nottingham for £17.3m (€19.8m).

The development will involve a mix of refurbishment of Grade II-listed buildings and new build. It will provide 117 studio, one and two-bed apartments for rent.

Construction is expected to begin in the current quarter and is expected to be completed in the first quarter of 2021, Cording said.

Charlie Miller, a director of residential acquisitions at Cording, said: “This is our second PRS project in Nottingham after Saffron Court in Crocus Street, which reflects our enthusiasm for the city in terms of demographics, local economics and affordability.

“Half of the population is under the age of 29 and that includes a thriving student population. Much of the housing stock in Nottingham is old and the supply of new dwellings has been very limited. We expect strong demand for the apartments.”

The Cording UK Residential Investment Fund was launched in August 2018 with equity commitments of more than £100m from German institutional investors. Cording is expecting to raise an additional £150m of equity commitments from continental European institutional investors. Using leverage, the fund will have £400m.

Last month, the fund secured its second deal with a £40m BTR development in Warrington. The fund’s first deal, a £50m BTR development in Leicester, was announced the month earlier.