PRS strategy reaps rich rewards for Barberry Group
BLACK Country-based property group Barberry has seen a decision to focus on increasing its activity in the Private Rented Sector pay off handsomely.
The Hagley company said it had recorded more than £16m of transactions in the PRS in the past 12 months.
Its current investments include over 100 apartments in blocks across the country, while it is also exploring opportunities to expand its residential portfolio even further.
Recent investments have seen the group acquire apartment blocks in Cheltenham and Cannock, which follow on from acquisitions in Lancaster, Leicester, Stevenage and Walsall earlier in the year.
Barberry has also sold around 50 apartments in schemes nationwide with a combined value of £6.9m.
Director Alex Watson said the company was still keen to purchase more opportunities in the residential market, with a focus on apartment blocks within a two-hour drive of the Midlands
“We have been focusing strongly on the buoyant residential market because it offers attractive yields and because there is excellent potential for growth,” he said.
Barberry is looking for completed or off plan residential blocks being sold by landlords, developers or receivers. It said it would consider investment opportunities of up to £20m and residential blocks with gross yields of 7%-plus.
“We are still very active in the commercial property sectors we are traditionally known for, but moving into the residential market has added important diversification to our growing portfolio,” added Mr Watson.
As well as this growing portfolio, construction will start soon on Barberry’s £54m student accommodation scheme with Coventry University at Bishop Gate in the city centre. The initial 725-bed phase of the development will see the former Royal Mail sorting office site transformed into state of the art student accommodation for the university. This is on course for completion in 2018.
