Moda Living and Apache Capital Partners today announce that, through their Private Rented Sector (“PRS”) Joint Venture, they will transform a 0.77-acre site into a £145 million premium purpose-built rental development on Broad Street, Birmingham. The site lies directly opposite Brindleyplace, Argent’s award winning 1.2 million sq. ft. mixed use commercial scheme. This is the JV’s first major project in the city and one of Birmingham’s largest post-Brexit property transactions.
On initial designs by Glenn Howells Architects, the landmark 37-storey tower will comprise 450 high-specification apartments and residents will have access to approximately 30,000 sq. ft. of dedicated communal amenity space. Approximately 35,000 sq. ft. of additional retail, office and leisure space across the scheme will create a new central destination for Birmingham. The scheme will be delivered by Moda Living, a developer and operator of private rented housing, and will be fully funded by Apache Capital, the London and Gulf based private real estate investment management firm.
The tower will complement the surrounding architecture of the ‘Ridge’, Birmingham’s designated tall building zone, and is located opposite Brindleyplace, which accommodates over 10,000 workers within Grade A offices, restaurants, cafes, bars and retail space around three public squares. It is within five minutes’ walk of Centenary Square home of the International Convention Centre, Symphony Hall and National Indoor Arena. Paradise Circus, a 1.8 million sq. ft. mixed-use development, and Arena Central, home to HSBC’s new 210,000 sq. ft. headquarters, are both also in the immediate vicinity. The site will also benefit from Birmingham’s tram network extension along Broad Street by 2018 and from the rest of the road nearby being fully pedestrianised.
Birmingham is the UK’s second city representing the largest business, professional and financial services centre outside of London, with a city centre population of over one million and a working age population in close proximity of over 4.3 million that is growing at twice the rate of the UK average.
Unlike other developers, Moda Living and its funding partner Apache Capital will retain ownership of the property and operate it themselves to ensure the creation of a genuine long-term community and investment platform.
A range of apartment types will be offered, with on-site amenities including a sky lounge, meeting rooms and indoor/outdoor cinema and fitness suite. There will also be a roof terrace with a 200m running track and landscaped gardens.
Moda Living and Apache Capital, through their JV partnership, have to date secured a PRS development pipeline of over 5,000 apartments with an end GDV of £1 billion, with schemes planned in other prime city centre sites such as Leeds, Liverpool, London, Manchester, the South East and Scotland. The JV recently secured planning permission for the £128 million 466 apartment Angel Gardens development in Manchester that Apache Capital has fully funded. The partnership continues to actively seek sites across the UK’s major regional cities.
The site was purchased from Bloomcrest, a joint venture between Richardson Capital LLP and Cordwell Property Group.
Lee Savage, UK Development Director of Moda Living, said:
“This site fits in perfectly with our strategy of targeting central locations in major urban areas, where we can deliver high quality rental housing at scale to professionals let down by the buy-to-let market while also supporting on-going regeneration efforts.”
Richard Jackson, Co-founder and Managing Director of Apache Capital Partners, said:
“This prime site is perfectly placed in the heart of central Birmingham and will deliver a completely new standard of residence and lifestyle for the city centre rental market whilst also becoming part of the local community and supporting the city’s continued strong growth. Funding support from our institutional investors remains strong for our secured premium PRS development pipeline that we will own and operate for the long term.”
Waheed Nazir, Strategic Director at BCC, said:
“The city has an ambitious growth agenda. We are planning for a significant number of new homes to meet the needs of our growing population and support our economic development.
New inward investment is hugely important to this growth agenda. Confidence in the City is high and the delivery of homes, quality of life and employment opportunities will continue to see Birmingham as an attractive place to invest. The City Council will be looking to support those developments that help achieve our aspirations and deliver the high quality environments for our growing population.”
DWF acted for Moda Living and Trowers & Hamlins acted for Apache Capital.