Nikal’s milestones in £100m PRS scheme
MANCHESTER-based property development and investment company Nikal is heralding two significant milestones in its £100m PRS scheme in Birmingham city centre.
It has completed the sale to LaSalle Investment Management for the first phase of the scheme and Sir Robert McAlpine has been appointed as main contractor.
The development, Exchange Square, is one of the largest residential developments outside London built specifically for the build-to-rent sector and was designed by Manchester’s twice Sterling Prize-shortlisted architectural practice Stephenson Studio.
Planning consent is in place for a total of 603 apartments – ranging from studios to three beds – over three buildings, with 30,000 square feet of ancillary ground floor leisure led retail space and 182 secure basement car parking spaces.
The first phase will see more than £100m of development delivered in three blocks of nine, 16 and 27 storeys and a 5,000sq ft members’ club-style hub, which will offer a range of exclusive services for residents including access to a concierge, a private lounge, gym and a 20,000sq ft residents’ roof garden.
Exchange Square occupies a prime spot in Birmingham’s Eastside, and is in a strategic island site between the established city central business district and the planned Curzon development, including the site selected for the Birmingham HS2 terminus.
Exchange Square is the second phase of the ambitious £400m mixed-use ‘Masshouse’ development. Phase one consisted of 340 apartments across two residential towers, one of which was ‘Hive’; a mixed-use property combining 167 apartments with retail to the ground floor.
Nick Payne, managing director at Nikal, said: “We’re extremely proud to be delivering this scheme for Birmingham City Centre. Bold development of this kind is needed to continue the city’s on-going regeneration and success.
“Sir Robert McAlpine is a trusted name in the construction sector and their appointment is a strong statement of our intent to deliver a truly first-class product to the market.”
Work on the first phase is due to begin this month, with the first three residential blocks due to be completed during 2018 and 2019.
Andrew Stanford, residential fund ,anager, LaSalle Investment Management, said: “Exchange Square will deliver accommodation in Birmingham to meet the demands of people looking for high quality city centre apartments to rent.
“After many years, the build to rent sector is beginning to flourish in the UK. It has an integral role to play in addressing the undersupply of homes across the country and will make renting a tenure that people aspire to live in.
“To date, we have invested £325m in build to rent and Exchange Square joins our growing portfolio of over 1,600 homes, including Greengate in Manchester which welcomed its first tenants earlier this year.”
Simon Trevor, Midlands and North West regional manager at Sir Robert McAlpine, said: “Exchange Square is a significant development and we are relishing the challenges and opportunities inherent in the delivery of a scheme of this size and scope to add to our existing PRS portfolio.”
Knight Frank and Savills are joint sales agents for Exchange Square and advised Nikal on the funding deal, with LaSalle advised by CBRE.
