Residential fund makes multimillion-pound acquisition of Jewellery Quarter scheme
A residential fund has swooped for a boutique residential asset in Birmingham’s Jewellery Quarter in a multimillion-pound deal.
The residential conversion of Derwent House, a Grade II listed industrial building comprising 40 apartments, has been sold to Urban Splash Residential Fund – which owns 270 homes across eight different Urban Splash neighbourhoods including in Manchester, Birmingham, Sheffield, Cambridge, Bradford and Bristol.
The scheme was sold by Savills on behalf of Derwent Lofts – a joint venture between Oval Real Estate and Javelin Block.
The 105-year-old building has been restored into a ‘turn-key’ apartment scheme that will provide 40 one and two bed duplex and single-storey homes. It was previously used by engineers Taylor & Challen for around 70 years and was used in the production of metal working machinery used throughout the jewellery industry and grew as the city’s Jewellery Quarter flourished during the early 20th Century.
Nick Prior, founder, Oval Real Estate, said: “It is always pleasing when the vision and concept of a restoration becomes reality, but even more so when the end product resonates so strongly with interested parties. We are very pleased to have completed this deal with Urban Splash Residential Fund, who have a proven track record of similar assets in the space.”
Joe Shorney, director and head of the Midlands new homes team at Savills, says: “In conjunction with our Operational Capital Markets Division in London, we are delighted to have secured such a swift sale of this turn-key apartment scheme. There was significant demand in the asset and the resulting transaction is one that perfectly demonstrates the strength of the residential market in Birmingham.”
Akeel Malik, fund manager at Urban Splash Residential Fund, added: “Having raised £150m of equity, we are actively expanding our portfolio, seeking new properties and developments to grow our rental offering. Derwent House was an attractive proposition; it is a great historic building sensitively converted into Duplex loft apartments that fit our brand and is located in what is one of Birmingham’s most vibrant districts. The building has undergone a stunning transformation and we are already receiving a significant uptake from residents in the apartments.”
