Pension Insurance Corporation (PIC) is financing the construction of a £200m (€232m) residential skyscraper in the West Midlands region of England.
The specialist insurer of defined benefit pension funds said it has forward-funded the One Eastside tower project in central Birmingham.
The financing will enable developer Court Collaboration construction 667 apartments on an existing brownfield site.
Located adjacent to the HS2 Curzon Street Station, One Eastside will comprise apartments across two towers, 16 and 51 storeys high. The development will be the tallest build-to-rent tower outside of London, standing at 154 metres tall.
Delphine Deasy, the head of build-to-rent at PIC, said: “PIC is a significant and purposeful investor in the UK’s infrastructure and housing, and I am delighted that we have now acquired our fourth build-to-rent project, investing £200m into central Birmingham.
“The 667 apartments development will have a positive effect on the local economy, including creating hundreds of new job opportunities and supporting the training of local students.
“At the same time, it will provide long-term, secure cashflows to back our policyholders’ pension payments in the decades ahead. We are actively engaged on a number of similar opportunities across the UK and have a strong pipeline going into 2023.”
Anthony McCourt, founder and CEO of Court Collaboration, said: “This £200m investment by Pension Insurance Corporation confirms that confidence in the build-to-rent sector continues to grow in Birmingham.
“One Eastside will see Court Collaboration leading the way in the West Midlands build-to-rent market with this landmark development being the jewel in the crown of the city’s build-to-rent offering. Once completed, One Eastside will provide a new benchmark for quality.”
Councillor Ian Ward, Birmingham City Council leader, said: “I’ve said for some time now that this is a golden decade of opportunity for Birmingham and this agreement is the latest major boost to our growing reputation as a city that is, quite literally, on the up.
“At 51 storeys high, this will be the region’s tallest build-to-rent structure and huge credit must go to our home-grown SME, Court Collaboration, for attracting high-calibre investors and partners like PIC and Sir Tony Gallagher to the city.”
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