Octopus Property provides £10m acquisition of development site in Birmingham
Octopus Property has provided regional developer Blackswan Developments with a 12-month £10.15m acquisition loan for the acquisition of a development site in central Birmingham.
Currently a Mr Tyre storage facility, the prime 3.6 acre site has planning consent to deliver a mixed-use scheme comprising 395 apartments for rent, including 38 affordable units, all finished to a very high specification.
Ludo Mackenzie, head of commercial property of Octopus Property, said: “We are pleased to be supporting an established local developer with the proposed development of this industrial site into a major PRS scheme, in what is an historical and sought after part of Birmingham.
“The scheme’s viability is well supported by attractive supply and demand dynamics, as well as the wider regeneration activity in the Jewellery Quarter.
“Following on from a recent £4m refinancing provided to a student developer in Liverpool, we are seeing increasing appetite from borrowers for fast and flexible finance in the regions.”
Located within the Jewellery Quarter on the north east fringe of Birmingham city centre, near to the Jewellery Quarter railway and tram station, the completed development is expected to benefit from the delivery of a new ticket hall for the station.
This will have trains connecting to both the city centre and London Marylebone via Birmingham Moor Street. The site also benefits from strong road and other public transport links.
Marcus Hawley, managing director at Blackswan Developments, added: “We are delighted to have completed the purchase of the Hockley Mills site, funded by our partners at Octopus Property. This is another important step in developing one of our key sites in the heart of the Jewellery Quarter.”
Along with 32,600 sq ft of ground floor retail and leisure space and 120 undercroft parking spaces, residents will also benefit from access to 10,000 sq ft of amenity space, including residents’ gym, lounges and a spacious lobby. BBS Capital acted as debt advisor to the borrower.
Adam Buchler at BBS Capital said: “We are delighted to have worked with Blackswan on the acquisition of this key site in the Jewellery Quarter.
“Our deep knowledge of the Birmingham market enabled us to present the scheme effectively to prospective lenders and secure the leverage and flexibility that our client required.”
The transaction follows on from a nine-month, £4m refinancing facility provided to an established purpose-built student accommodation developer, secured against a freehold development site in Liverpool, which has planning consent for a 320-bed PBSA scheme and 52 serviced apartments.