Debt advisory business BBS Capital has closed a facility with Alpha Property Lending to provide a peak debt loan to fund the construction of 438 new homes by a joint venture between Galliard Homes and Wavensmere Homes.
The nearly five-acre site on Belgrave Middleway, Birmingham, UK, will be a new neighbourhood in a centrally located area in the city. Built over three phases, construction started this month with the completion of the final phase expected in 2024.
The site had initially been acquired by Galliard Homes and Apsley House Capital and will be delivered in a joint venture between Galliard Homes, Apsley House Capital and Wavensmere Homes, with Wavensmere taking the lead on the delivery of the scheme.
BBS Capital will also retain a minority interest in the project, which has a gross development value of more than £100 mln (€116 mln).
The deal represents the latest residential development facility that BBS Capital has advised on. In the past 12 months alone, the debt advisory firm has financed projects in the build to rent, build to sell and co-living space with over 2,000 units combined.
Adam Buchler, managing director at BBS Capital, said: ‘This financing will help to deliver much-needed, high quality homes in England’s second city. Introducing our longstanding clients and partners Wavensmere Homes and Galliard and running a competitive process to identify the best solution to fund this project, illustrates how we use our relationships among lenders and developers to achieve mutually beneficial results.’
