£60m funding secured for 14-storey city centre scheme

A major property fund has made its first investment in the UK, backing the development of a 14 storey apartment block in Birmingham city centre with £60m.

The Aberdeen Standard Pan-European Residential Property Fund (ASPER) is forward funding the redevelopment of a 10-storey post office building on Lionel Street into 259 apartments for private rental.

The development is in partnership with Lionel House Developments, a development vehicle of specialist residential property firm Stamford Property Investments.

The redevelopment will deliver a range of high quality one, two and three bedroomed contemporary apartments.

The building is located between the Jewellery Quarter and Paradise Circus development.

Early enabling works are already underway, and the scheme development is expected to be completed in the summer of 2021.

Ed Crockett, fund manager at Aberdeen Standard Investments, said: “This deal underlines our confidence in the UK private rented sector, which is set to increase by around 24% by 2022.

“Birmingham is a growing city experiencing high levels of investment over the last few years. Driven by strong underlying economic fundamentals and flourishing employment, the city’s vibrant residential rental market is showing robust supply and demand dynamics, which makes it a natural fit with ASPER’s investment criteria. We are confident that it will be one of the best build-to-rent schemes in Birmingham.”

Uri Goldberg of Stamford Property Investments, added: “This development is an exciting project for us and our third development in Birmingham. Having worked with the Council to secure planning for the regeneration of this prime site, we are delighted to be partnering with ASI and are looking forward to delivering a quality BTR scheme for them.”

The apartments will be marketed and managed by JLL.

 

 

 

 

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