Investment fund swoops for Baltic Village resi scheme

THE Baltic Village rented apartments development under construction in Liverpool is to be sold for over £50m to a large residential property fund.

The sale of Promenade Estates’ scheme to Vista Fund – which was set up by Countrywide, the property services group and Hermes Investment Management, is thought to be one of the largest PRS (private rental sector)  deals completed outside of London. It also underlines investor confidence in Liverpool.

The forward-purchase deal will be Vista’s first large scale investment.

Baltic Village is owned by Liverpool developers Promenade Estates which took over the disused site in the Baltic Triangle in 2014 after the previous developer went into administration.  It is the first new build PRS scheme in Merseyside, and once completed will comprise of 324 one, two and three bedroom apartments, available only to rent. Under construction since February this year, the development aims to  revolutionise renting in the city, with a concierge, meeting rooms, café and social area.

The scheme has been designed by Liverpool architects, Falconer Chester Hall and Balfour Beatty has been contracted to build the scheme, which is due to complete in September 2016.

Promenade Estates will continue to develop the scheme, which is being financed by HSBC. Upon completion the scheme will be handed over to Vista.

Peter Hynd, chairman of Promenade Estates says: “When we took over the site in the Baltic Triangle, it was a real challenge, an eyesore and blight on the city centre. It’s good that Promenade Estates has been able to turn it around into a prime investment opportunity, this is a shot in the arm for the city and its image.

“PRS is a term that has been thrown around a lot recently, but what sets the Baltic Village apart in this sector is the high quality of the product. Location, specific design, and customer service are crucial to achieve an outstanding Private Rented Scheme and we have worked hard to ensure that the Baltic Village will encapsulate all these things to make it truly successful.  

“It’s also great news for Liverpool to be able to attract Grade A investment to the city and demonstrates its leading power in property and investment in the North West.”

Adrian Bird, head of acquisitions for Countrywide, says: “It is great to be working with Promenade Estates on this exciting new development. Liverpool city centre postcodes contain the most affluent group of tenants in the country.

“Three quarters of tenants choose to rent as a positive lifestyle choice meaning prime city centre markets are performing particularly strongly. We are proud to be part of the city’s future and helping more people to find the right home for them.”

Chris Taylor, chief executive of Hermes Real Estate and head of private markets at Hermes Investment Management added: “Baltic Village is a solid long-term investment in line with our strategy of focusing on high-quality, purpose-built residential stock across the UK, creating purpose built accessible housing to rent in city centre locations which benefit from improving public realm, infrastructure, heritage, retail and cultural facilities.

“We firmly believe that this approach will increasingly meet the demand arising from the long term urbanisation and demographic lifestyle trends which we are witnessing.”