Multi-million pound land deal paves the way for 500-home development site
Galliard Homes and Apsley House Capital has completed a second site acquisition in Birmingham’s Jewellery Quarter, where it plans a 500-home development.
The joint venture partners have bought the long leasehold on a four-acre site on Summer Hill Road from British Airways Pension Fund in a deal backed by £9.4m from OakNorth bank.
The freehold of the site has also been acquired.
Robin Norstrom, a director at Apsley House Capital, said: “The site is a significant gateway into the Jewellery Quarter and our second here following our acquisition of the AE Harris site. We are huge fans of this historic district and our holdings will make us the biggest residential developer in the area.”
The site, bounded by Summer Hill Road, Powell Street, Camden Street and the A4540 Icknield Street, is currently home to a two storey 92,472 sq ft office development and a 206 space surface car park.
The JV team is planning a residential scheme of more than 500 new homes at the site, called Camden Yard.
Jonathan Morgan, Galliard director, said: “By 2039, Birmingham’s population is expected to increase to 1.3m meaning that the city needs another 100,000 homes to be built over the next two decades. Unfortunately, it’s currently falling well below the 5,000 per annum target needed to achieve this, with the total for 2018 expected to be around 2,777.
“That’s why we hope to secure the planning permission needed to deliver hundreds of new high quality and affordable homes in an area that continues to strengthen as a centre for financial and business services. The team at OakNorth were able to complete the deal in a matter of weeks which was essential in enabling us to apply for planning permission within our time frame.”
Stephen Conway, executive chairman, Galliard Homes, said: “We have around 2,000 new homes with a GDV in excess of £500m in the pipeline for the city and are looking forward to starting work on the first of these before the end of this year.”
Damien Hughes, senior property finance director at OakNorth, said: “Both Galliard and Apsley House Capital share Birmingham City Council’s vision of it being a great place in which to live and work. Over the last five years, they have assembled a residential portfolio in the city with a potential GDV in excess of £500 million, including the 750-unit Soho Loop site which we provided them funding for last year. We’re delighted to be working with them both again and wish them the best of luck in their application for planning permission.”
