£43m forward funding deal agreed for Market Quarter scheme
A £43m forward funding deal has been agreed, paving the way for a build-to rent development in Rugby.
Edmond de Rothschild Real Estate Investment Management (REIM) has secured the seventh investment for its Edmond de Rothschild Residential Investment Fund UK, which invests in the private rented sector (PRS) on behalf of European institutional investors.
Located at Railway Terrace, the development, called Market Quarter, will provide 360 one and two-bed apartments for rent.
Construction, which will be carried out by Metnor, is expected to be completed in April 2023.
Charlie Miller, co-head of residential in the UK and director of residential transactions at Edmond de Rothschild REIM, said: “Market Quarter is very well located next to Rugby’s train station, which runs frequent services to London and Birmingham. Rugby is an attractive market town and we will provide high-quality rental accommodation at affordable levels in line with the strategy for the fund”.
Cllr Jill Simpson-Vince, Rugby Borough Council cabinet member for growth and investment, said: “I’m pleased that the Market Quarter development is underway. It is a key gateway site to Rugby town centre, marking an important arrival point to the town from Rugby train station.
“While Rugby is one of the fastest growing boroughs in the country, the changing nature of retail and the ongoing impact of COVID-19 brings challenges for the town centre. In response we are bringing forward the Rugby Town Centre Regeneration Plan and Spatial Strategy, which will create a roadmap for the regeneration of the town centre over the next 15 years.
“The Market Quarter development demonstrates market appetite to deliver residential accommodation and new public open space within the town centre, on a key site within the emerging plan”.
The Edmond de Rothschild Residential Investment Fund UK was launched in August 2018 and to date has raised equity commitments of around £260m.
The fund’s first six acquisitions were also forward funding agreements – the Merlin Wharf site in the Waterside regeneration area of Leicester, Wellington House, also in Leicester, a site in the Stadium Quarter regeneration area in Warrington, a site in the Lace Market area of Nottingham and the entire site of the former Kent Street Baths in the centre of Birmingham, acquired in two parts.