Europa Capital has added 203 apartments to its UK residential portfolio.
The pan-European real estate investment manager, on behalf of its Europa Fund VI value-add fund, is forward funding the Crown Works build-to-rent development in Birmingham.
Construction is expected to start imminently, with practical completion expected in the first quarter of 2024, Europa Capital said.
The seven-storey Crown Works building on Hanley Street comprises a mix of one, two and three-bedroom apartments across 138,000sqft of space.
The acquisition marks Europa Capital’s entry into the Birmingham BTR market. The company has previously made acquisitions in London, Manchester and Sheffield.
Hugo Black, partner at Europa Capital, said: “The lack of supply of high-quality rental accommodation remains a UK wide problem, with ongoing buy-to-let mortgage redemptions continuing to exceed build to rent completions.
“This is our first foray into the Birmingham market, which, as the UK’s second-largest city and with a burgeoning young population – thanks largely to being home to one of the country’s leading universities – is an attractive location for this type of residential product.”
Jason Oram, partner and fund manager at Europa Capital, said: “Against the current economic backdrop and rising inflation, build-to-rent offers institutional investors a good hedge, whilst being more resilient to structural change than other asset classes.
“This latest investment follows close on the heels of our recent acquisition of a 161 apartment BTR development on Bendix Street in Manchester, as momentum continues to build behind our growing UK BTR platform.”
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