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Savills plc

05/25/2021 | Press release | Distributed by Public on 05/25/2021 02:25

Galliard and Apsley House Capital Announce Funding of Soho Wharf, Birmingham as Heimstaden enters the UK residential market

With over 114,000 homes under management at a value of more than £15bn, Heimstaden Bostad is one of Europe's leading residential real estate companies and the largest real estate company in the Nordics. This transaction marks Heimstaden Bostad's first UK investment and shows the increased demand for the Build to Rent ('BtR') sector as it continues to grow at pace.

Soho Wharf will deliver 752 new BtR homes, comprising 650 apartments and 102 townhouses along with commercial space, and providing on site affordable homes at discounted market rents.

The development will also provide market-leading and thoughtfully designed public realm, with parks, gardens, shared amenity space, new pedestrian pathways and cycle ways for residents.
It is at the heart of the Greater Icknield Regeneration area to the West of Birmingham city centre and is part of a series of major regeneration projects across Birmingham, including the new HS2 line, the 2022 Commonwealth Games, the expansion of the Midland Metro Tram and enlargement of Birmingham City airport.

Savills and Howard Kennedy acted as advisors to Galliard Homes Limited and Apsley House Capital Plc.

Heimstaden Bostad was advised by Clifford Chance, Arcadis, KPMG and FTI Consulting

Donagh O'Sullivan, Chief Executive Officer of Galliard Homes Limited said, 'Birmingham is one of the most exciting, fastest growing cities in the UK and we are proud to be a major part of its success story. Galliard's expertise in regeneration will bring new life to this quarter of the city. Soho Wharf will provide a high-quality community, within a short walk of the city centre.'

Gerard Nock, Chairman of Apsley House Capital Plc said 'The Galliard Apsley Partnership is all about creating destinations and fantastic places to live. We are delighted to build on our great working relationship with Birmingham City Council and contribute to the ongoing regeneration within the Greater Icknield Masterplan, producing a brand-new Canal Quarter from which the local area will benefit.'

Soren Vendelbo Jacobsen, Co-Chief Investment Officer at Heimstaden Bostad said, 'An entry into the British market is in line with our strategy to expand into strong and attractive European markets. By providing high-quality yet affordable homes in an up-and-coming area, we are well-positioned to capitalise on the growing rental market in Birmingham and the UK.'

Andrew Brentnall, UK Board Director, Head of Residential Investment and Development, Savills Operational Capital Markets said, 'We are delighted to have advised Galliard Homes and Apsley House Capital on the largest BtR forwarding funding deal outside of London, as well as supported Heimstaden Bostad with its expansion into the UK. The BtR market continues to attract record levels of capital given its attractive and resilient returns.'

Councillor Ian Ward, Leader of Birmingham City Council said, 'This is an important development that will bring much needed high quality and affordable homes to the city. The fact that this is Heimstaden Bostad's first investment in the UK is a vote of confidence for Birmingham and reinforces our reputation as a great place to do business. The Council has ambitious plans to grow the city and with the arrival of the Commonwealth Games next year with HS2 to follow, we can look forward to exciting times ahead as we consolidate Birmingham's position as the UK's premier destination for inward investment.'