£27m investment kick-starts construction at Birmingham development
A 140-home regeneration scheme in Birmingham is set to get off the ground after Cedar Invest received a £21m investment to complete the development.
Named The Forge Digbeth, the five-storey development comprises one and two-bedroom apartments and is set for completion in December 2020.
Providing new homes for over 226 residents, Cedar Invest has already sold 107 of the 140 homes. The development will also feature a landscaped external area and 42-space car park.
The investment, delivered by Frontier Development Capital (FDC) and Coutts, has allowed construction to start at the previously disused 0.86-acre Park Works brownfield site, supporting more than 300 jobs in the construction phase.
Cedar Invest is an equity finance vehicle owned by the family office of property developer Grahame Whateley.
John Whateley, director at Cedar Invest, said: “The Forge Digbeth is set to be a transformative development in the city, regenerating a currently underutilised piece of land to provide a range of luxury new homes.
“By securing backing from FDC and Coutts we have been able to get spades into the ground – a significant milestone for Cedar but also Birmingham as we contribute to its ongoing growth.”
The £27m package includes a £17.5m loan from Coutts and £3.5m from Frontier Development Capital, with Cedar Invest investing £6m.
Nick Oakley, head of property investments at Frontier Development Capital, said:
“Demonstrating the flexibility of the finance we provide at FDC, this investment in Cedar Invest will be crucial in allowing the developer to deliver this flagship development, a strong platform from which it can bring forward more schemes across the Midlands and wider UK.
“The volume and quality of residential development in Birmingham is on the rise, driven by developers like Cedar Invest. We look forward to working with the team as this scheme takes shape and delivers much-needed homes in the city.”