West Midlands focus for developer’s £600M PRS plans
PRESS RELEASE, 10th May 2018
Property development specialist, The High Street Group of Companies, has secured a deal to build private rented sector (PRS) apartments on a second Birmingham City Centre site – bringing the gross development value of its portfolio of proposed projects to more than £600 million.
The site is close to The Mailbox retail complex and the planned HS2 rail link and is part of an area undergoing significant regeneration.
The £120 million venture will be developed in partnership with the site’s owner – Birmingham based Taylor Grange Developments – and will create around 500 one, two and three bedroomed apartments. It is hoped that construction will begin later this year.
Meanwhile, the partnership is proceeding with a similar proposal in Digbeth – the city’s improving southern gateway. This £50 million venture will deliver an eight storey, 220 apartment complex.
And with two further second city sites being seriously considered by the consortium, The High Street Group’s investment in Birmingham could rise to more than £300 million, creating over 2,000 PRS homes.
Group Chairman Gary Forrest commented: “Birmingham is a dynamic city currently undergoing significant regeneration and therefore it represents a great place to invest. Almost 17% of the UK population is renting privately and this figure is expected to grow significantly.
“In response, we are creating high quality living spaces, like these in Birmingham, future proofed through the use of the latest SMART technologies. There are communal relaxation facilities, where people can meet, form friendships and build new communities.
“This style of living is becoming the choice of young professionals and we anticipate increasing our investment levels by around £200 million per year for several years to come.
“Our developments offer extremely attractive investment opportunities for institutional and individual investors who can enjoy yields and capital growth in excess of seven per cent per annum. These are none volatile, high quality assets offering attractive, long term returns, which we can maximise for our partners.”
The High Street Group already has PRS projects under construction. The first is in Milton Keynes, where a £30 million investment is creating a seven storey facility containing 139 apartments. Grainger plc, the UK’s largest listed residential landlord has unconditionally agreed to forward fund and acquire this development.
The second is in Newcastle, where the £46 million, 26 storey Hadrian’s Tower will become the city’s tallest building and provide 162 apartments.
With planning permission recently granted for a site in Salford, the start of work on the £26 million, nine storey, 127 unit Middlewood Plaza is expected to commence this summer.
Other High Street Group projects include Cheshire Junction in Warrington – a £46 million eight storey, 362 unit development and a £22 million, ten storey, 156 unit development in Trafford, Manchester.
Including a ninth initiative under consideration in the North East, the group is either building, planning or considering PRS schemes totalling almost 3,000 units, representing a combined gross development value of over £600 million.
With its headquarters in Cuthbert House, Newcastle, The High Street Group of Companies was established by Gary Forrest in 2004. It has grown to become a leading financial and property group employing over 100 people in activities including large scale property development and construction, hospitality and leisure.