Swedish giant makes UK debut after striking Soho Wharf deal
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A joint venture between Galliard Homes and Apsley House Capital has announced the forward funding of the Soho Wharf regeneration scheme in Birmingham to Swedish residential company Heimstaden Bostad for £160m.
With more than 114,000 homes under management at a value of more than £15bn, Heimstaden Bostad is one of Europe’s leading residential real estate companies and the largest real estate company in the Nordics.
The deal marks Heimstaden Bostad’s first UK investment.
Soho Wharf will deliver 752 new build to rent homes, comprising 650 apartments and 102 townhouses along with commercial space, and providing on site affordable homes at discounted market rents.
It is at the heart of the Greater Icknield regeneration area to the West of Birmingham city centre and is part of a series of major regeneration projects across Birmingham, including the new HS2 line, the 2022 Commonwealth Games, the expansion of the Midland Metro Tram and enlargement of Birmingham City airport.
Donagh O’Sullivan, chief executive of Galliard Homes, said: “Birmingham is one of the most exciting, fastest growing cities in the UK and we are proud to be a major part of its success story. Galliard’s expertise in regeneration will bring new life to this quarter of the city. Soho Wharf will provide a high-quality community, within a short walk of the city centre.”
Gerard Nock, chairman of Apsley House Capital, said: “The Galliard Apsley Partnership is all about creating destinations and fantastic places to live. We are delighted to build on our great working relationship with Birmingham City Council and contribute to the ongoing regeneration within the Greater Icknield Masterplan, producing a brand-new Canal Quarter from which the local area will benefit.”
Soren Vendelbo Jacobsen, co-chief investment officer at Heimstaden Bostad, added: “An entry into the British market is in line with our strategy to expand into strong and attractive European markets. By providing high-quality yet affordable homes in an up-and-coming area, we are well-positioned to capitalise on the growing rental market in Birmingham and the UK.”
Savills and Howard Kennedy acted as advisors to Galliard Homes and Apsley House Capital.
Heimstaden Bostad was advised by Clifford Chance, Arcadis, KPMG and FTI Consulting.