LaSalle Investment Management has acquired a long leasehold interest in 603 build-to-rent apartments at Nikal’s Exchange Square scheme in Birmingham for over £100 mln (€127 mln) on behalf of a client, following planning approval for the first phase of the development.
The apartments are predominantly a mix of one and two bedroom units with a modest selection of studios and are spread across three buildings of 9, 16 and 27 storeys. A fourth building with be retained by UK developer Nikal for private sale, along with the retail element of the scheme.
Work is anticipated to begin on site in summer 2016 with completion of the first block due in 2018 and the final by the end of 2019.
Designed by architects Stephenson Studio, Exchange Square will deliver a total of 987 apartments across four buildings, 186 car parking spaces and over 27,500 sq ft (2,554 m2) of retail and leisure space. It will also include a 5,000 sq ft members’ club and an extensive landscaped rooftop garden covering over 20,000 sq ft.
Exchange Square is the second residential phase of Nikal’s £600 mln regeneration of the site, which has delivered 354 residential units across two buildings to date.
Andrew Stanford, UK residential fund manager, LaSalle Investment Management, said: 'Exchange Square is a significant acquisition that reinforces our strong belief in the long-term future of the build-to-rent sector for institutional investors. We will continue to target opportunities of this type in cities, such as Birmingham, that our model indicates have strong demand fundamentals.'
Nikal has an existing outline planning consent in place for the delivery of up to 1,000 residential units on the site, with a detailed planning application for a second phase of development, including additional residential buildings and a new public square, due to be determined by Birmingham City Council in May.
LaSalle was advised by CBRE; Savills has been appointed as property and lettings manager.
