Work on a major regeneration project near the centre of in Birmingham will start in early February.
High Street Residential – a specialist in the development of high quality city centre apartments – will launch the first phase of the £133 million Kent Street project.
The Cording Real Estate Group, a member of the Edmond de Rothschild Real Estate investment management platform, has already agreed a £49.7 million forward funding deal for a ten storey building on the 2.2 acre site, bounded by Bromsgrove Street, Gooch Street North, Kent Street and Henstead Street.
The development will provide retail space, a café, gym and a residents’ hub, along with a minimum of 262 mainly one and two-bed apartments for private rent (PRS), which may increase to 279 units, subject to planning consent for the additional 17. Nobles Construction is carrying out the building work, which is expected to be completed in June 2022.
It is hoped that work will commence on a second 19 storey building next year, bringing the number of apartments available to over 500 by 2023.
High Street Residential is part of the Newcastle-upon-Tyne-based High Street Group of Companies. Specialising in PRS, it has announced 12 ventures in major UK towns and cities, with a gross development value of £644 million, creating more than 3,000 apartments.
Kent Street is the second to secure Cording’s backing – the other is in Warrington – and High Street Group Chairman, Gary Forrest, said: “This demonstrates the confidence which investors have in PRS. It offers extremely attractive yields and capital growth in the form of non-volatile, high quality assets with attractive, long term returns.”
“Birmingham is undergoing significant regeneration and represents a great place to invest. Local demand for professionally managed, purpose built rental accommodation is rising quickly and to meet this we are creating high quality living spaces, future proofed through the use of the latest smart technologies. There will also be communal relaxation facilities, where people can meet, form friendships and build new communities.”
When combined with other projects planned, High Street Residential proposes to deliver up to 1,300 apartments in Birmingham as part of a £300 million development programme.
For Cording – a key partner with The High Street Group – Kent Street represents the fourth site in a £400 million UK residential investment fund, managed on behalf of European investors.