New image of Masshouse apartments as £100m funding deal agreed
Developer Nikal seals deal with LaSalle Investment Management for leasehold of more than 600 city centre apartments
A new image of more than 600 apartments to be built in Birmingham city centre has been released as developers secure £100 million to fund the latest phase of the Masshouse regeneration project.
The CGI (above) shows the first phase of development at Exchange Square as seen from James Watt Queensway next to Aston University.
It has been released by developer Nikal as it announces that LaSalle Investment Management has agreed a deal worth in excess of £100 million to acquire the long leasehold.
Manchester-based Nikal will develop three buildings – of nine, 16 and 27 storeys respectively – containing a total 603 apartments, ranging from studios to three bedrooms.
There will also be rooftop gardens, 27,500 sq ft of ground floor retail and leisure space and parking for 187 cars and 78 bikes.
LaSalle Investment Management has acquired the long leasehold interest in the residential units for build-to-rent apartments on behalf of an unnamed client.
The project, to be built next to the 21-storey Mclaren office building, was given planning permission by Birmingham City Council yesterday while a second phase, to build 223 apartments, is currently going through the application process.
Exchange Square is the latest stage of the long-running redevelopment of the land formerly occupied by the Masshouse Circus traffic island system which has already seen two residential towers – Hive and Masshouse – completed while a third called Lighthouse is nearing completion.
The first phase includes a 5,000 sq ft hub that will contain a number of services for residents, including a concierge and access to a private lounge.
Work is anticipated to begin on the site this summer, with completion of the first block in 2018 and the final block before the end of 2019.
Nikal’s managing director Nick Payne said: “We are delighted to be working with such an established and well respected investment manager.
“Now that planning consent has been secured, we are in a position to bring forward the first phase of what we are sure will be a transformational development for the area and one that will be an exemplar scheme for Birmingham’s residential market.
“With its prime location and on-site ancillary services, we are anticipating significant rental interest from a wide range of professionals, underpinned by the city’s growing financial services sector.
“With the funding and planning consent both in place, we are looking to appoint our contractor imminently.”
Richard Debney, regional director with LaSalle Investment Management, added: “Exchange Square will be the first build-to-rent scheme of its size in Birmingham, which has enjoyed a very strong residential letting market of late with a shortage of high quality apartments.
“We believe the urban village concept at Exchange Square will not only create a critical mass of apartments with attractive community facilities but bring a unique proposition to the Birmingham market we are confident will prove popular with young professionals seeking high-quality city centre accommodation.”
Manchester-based architecture firm Stephenson Studio has designed both phases of Exchange Square.
Knight Frank and Savills are joint sales agencies on the scheme and Savills also advised on all planning matters.
LaSalle Investment Management was advised by CBRE and has appointed Savills as letting and property manager.