BPG outlines plans to be a major player in property sector with £45m acquisitions
BIRMINGHAM Properties Group has outlined its growth strategy with the acquisition of new sites around the West Midlands with a development value of £45m.
John Tebbutt, managing director of BPG, said a more buoyant property market, plus better conditions both in purchaser demand and funding availability, had enabled the company to begin several new projects.
Investments owned by the company that were not considered to be core holdings have been disposed of to release equity, which in turn has enabled BPG to carry out the new developments, in conjunction with debt from Royal Bank of Scotland, Handelsbanken, and other lenders.
It is the second major investment deal announced in the commercial property sector in as many weeks, following REI’s £25m spending spree earlier this month.
“Now that speculative development is viable once more in the region, it seemed the right time to get our exciting plans under way,” he said.
The first property is Kensington House, a 132-bedroom student studio scheme close to the Mailbox in Birmingham city centre, which is due to open in September 2015. As well as offering deluxe living accommodation, it also boasts a cinema room, games room, collaborative learning areas, its own gym, and secure parking.
“Thanks to its prime B1 location, this student scheme is already proving to be extremely popular and is already at this early stage 50% reserved for the September 2015 term,” said Tebbutt.
BPG has also bought a site in Bromsgrove Street, in the Southside area of the city centre, where it will develop at least 70 residential units, as well as a large site in Alcester Road, Moseley, where it plans to build 50 apartments.
“The site in Alcester Road already had planning consent, so we are hopeful of making a start on site this year delivering new apartments into a popular area on a site that has been dormant for over 10 years,” he added.
Outside Birmingham, the company has acquired the historic Poor Clares Convent, in Baddesley Clinton, which closed in 2011 after 160 years.
BPG achieved planning consent to create 17 high-spec residential properties, a mixture of both conversion and new build, developing luxury accommodation that will range in size from 800 sq ft to more than 3,000 sq ft. It will also develop a new substantial six-bedroom home of over 5,000 sq ft in the grounds of the convent.
Tebbutt said: “The convent is in a secluded part of one of the most highly regarded villages in the West Midlands and I have no doubt that it will be exceptionally popular when we begin to release details for sale later in the year.
“All these acquisitions signal a real shift in gear for Birmingham Properties Group and we are very excited to get these schemes under way.
“We are still very keen to acquire additional opportunities in the residential student and commercial sectors and are well placed financially to do so.”
