Global real estate investor swoops for 260 Midlands homes
Wavensmere Homes has sold a portfolio of 262 single-family homes in the Midlands to global real estate investment company, Kennedy Wilson.
James Dickens at Friar Gate Goods Yard, Derby
The portfolio comprises 131 homes which are currently under construction at Wavensmere Homes’ £75m redevelopment of Friar Gate Goods Yard in Derby city centre. 131 houses have also been acquired at the £150m Wolverhampton Canalside South site, where construction is set to begin.
Designed by Glancy Nicholls Architects, the portfolio of two and three-bed city centre rental homes will become ready for occupation between 2026 and 2027. Designed to meet EPC-A specifications, each house will have an EV car charging port, an air source heat pump and solar PV panels to generate green energy.
The off-plan transaction was brokered by ACRE Capital Real Estate’s Operational Living team.
Friar Gate Goods Yard project will redevelop two landmark Grade II listed buildings into over 110,000 sq ft of commercial space, alongside 276 homes. The site first became derelict in 1972, and over time became overgrown and fell into a poor state of repair. An arson attack took place at the Goods Yard in 2020, which exposed the whole inner iron structure of the two historic buildings.
At Canalside South in Wolverhampton, more than 530 waterfront homes will be brought forward on the Canal & River Trust-owned former Crane Foundry site, and the Council’s former British Steel site and land off Qualcast Road.
378 two and three-bedroom townhouses, 145 one and two-bedroom apartments and 10 co-living units are set to be delivered, alongside seven acres of green space and 14,400 sq ft of commercial space in disused railway arches.
James Dickens, managing director of Wavensmere Homes said: “We are thrilled to announce this significant deal, bringing institutional capital from a major global investor into regeneration sites that had long been derelict in the centres of Derby and Wolverhampton. We continue to see huge demand for eco-focused single-family housing that’s close to major centres of employment, retail and leisure, with extensive healthcare, public transport, and education provision.
“This transaction enables us to accelerate our construction programme, delivering homes for local people, whilst supporting local supply chains at Derby’s Friar Gate Goods Yard and Wolverhampton Canalside South. An additional 145 open market houses and apartments at Friar Gate, and a further 450 mixed-tenure homes at Canalside South, will become available in-line with our build programmes.”
Mike Pegler, President of Kennedy Wilson Europe added: “Wavensmere Homes has garnered a strong reputation for urban regeneration and the delivery of major housing-led schemes within city centre and town locations. These homes will offer residents high quality, well-designed and sustainable rental housing in excellent locations within Derby and Wolverhampton. We are looking forward to construction progressing as we continue to grow our UK single family housing platform.”
Mark Wilson, partner at Acre Capital Real Estate said: “This UK residential portfolio offers prime city centre addresses and exemplary ESG credentials which is reflective of Wavensmere’s high quality developments. These two well-amenitised Midlands locations have the added benefit of the range of on-site communal facilities Wavensmere delivers for residents, such as co-working offices, screening rooms, community gardens, and fitness and play spaces.”
Cllr Chris Burden, City of Wolverhampton Council’s cabinet member for city development, jobs and skills said: “Wolverhampton is seeing a huge amount of investment driven by the council’s compelling vision for the city centre based on better connectivity, more homes, jobs, skills and learning opportunities, and a resurgent visitor economy.
“Our work with Wavensmere to bring Canalside South forward is part of our brownfield first strategy to bring life back to redundant sites along our canal network, and through strong collaboration with private and public sector partners, there is more to come.”
Jonathan Wright, partner at Knights, legal adviser to Wavensmere Homes said: “The market in UK residential investment is developing at a rapid rate. We are assisting clients who are both investing in the sector themselves, as well as developing product to satisfy a growing demand. Sophisticated investors demand a high-quality approach in all aspects and these transactions were no exception to this. I want to pay credit to my team who worked closely with those at both ACRE Capital and Wavensmere, as well as multiple other stakeholders, to deliver this deal.
“Wavensmere Homes is not just leading this sector, but setting an example of how the housing crisis can be tackled. Whilst some would query the high targets set by Government, the Letwin Review concluded that the best approach was to produce better quality multi-tenure developments, with each tenure having a “critical mass” in terms of its own build rate. By combining the housing typologies that Wavensmere is delivering for Kennedy Wilson with traditional tenures, build rates can be accelerated.”
