Work has started on site to deliver a £28 million build-to-rent scheme which will create 156 new homes in Birmingham’s Jewellery Quarter.
The beginning of construction work on the site in Great Hampton Street follows a deal which saw the UK’s largest listed residential landlord, Grainger, agree to forward fund and acquire the private rented sector (PRS) development, known as Gilder’s Yard, from Blackswan.
David Allen, director of Shortland Penn + Moore, acted as funding adviser to Blackswan.
He said: “We are extremely pleased to have advised on this deal – this is still a relatively new and vibrant sector, certainly in this region and shows there is an appetite for this type of development outside of London and the South East.
“We are working on other projects in this sector and there is certainly very strong interest from institutional investors.”
It marks an important milestone for Birmingham-based Blackswan as the first of several exciting developments it has in the pipeline in the historic Jewellery Quarter.
Planning permission was awarded earlier this year to develop the industrial site into 156 high quality one and two-bedroom apartments, with 47 parking spaces, 28 cycle spaces, and commercial units.
Blackswan will develop the site and Midlands-based construction group Shaylor has been appointed as contractor.
The development will involve demolishing some of the existing buildings and the renovation of the three-storey Grade II listed former jewellery factory at 16-18 Great Hampton Street, which was once home to J Ashford & Son.
Blackswan Managing director Marcus Hawley said: “It’s wonderful to see work finally begin at Gilder’s Yard, an exciting and attractive scheme which will give this part of the Jewellery Quarter a huge lift. Great Hampton Street is full of character and we hope Gilder’s Yard will act as a catalyst that brings this important street back to life.”
“This project marks a major milestone for us. The Jewellery Quarter is a unique location and forms a key part of our business growth strategy. We are based locally and we can appreciate the enormous potential it offers us to create great places that knit in the historic environment and character with high quality new spaces.”
“Gilder’s Yard, and the other potential developments we are currently exploring, will improve the Jewellery Quarter, offer high quality new homes, and make the area even more vibrant than it is now.”
Grainger is the UK’s largest listed residential landlord. Birmingham is a key target city for Grainger’s PRS investment strategy due to its strong economic prospects and growth potential.
Ed Ellerington, National Acquisitions Director of Grainger, said: “We are very excited about Gilder’s Yard which will create 156 brand-new, high quality homes, built specifically for the rental market. Birmingham is a key target city for us. We know it well, with an established local property management office, and we hope that this is the first of several new developments that we can help bring forward in the area.”