Pan-European real estate investment manager Europa Capital has entered the Birmingham market with the acquisition of a new build-to-rent (BTR) development in the city.
Financial details were not disclosed.
The forward-funding agreement for Crown Works, a new 203-apartment scheme adjacent to the city’s central business district, has been made on behalf of value-add fund, Europa Fund VI.
Hugo Black, partner at Europa Capital, commented: '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.'
The seven storey Crown Works building on Hanley Street comprises a mix of one, two and three bedroom apartments across 138,000 ft2 (12,820 m2) of space, with 5,900 ft2 of amenities.
The apartments will also benefit from access to green energy through the installation of 2,400 ft2 of rooftop solar PV panels. The commercial units are expected to receive a BREEAM Excellent rating.
Construction is expected to start imminently, with practical completion of the development due to be reached in Q1 2024.
Following acquisitions in London, Manchester and Sheffield, Europa Capital has more than 1,600 BTR units in the UK.
Jason Oram, partner & fund manager at Europa Capital, added: '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.'
