Flats on neglected site finally move step closer with £98m deal
A LONG-awaited residential scheme in Birmingham city centre has moved a step closer as a £98 million funding deal was agreed.
Invesco Real Estate is backing the project at the corner of Holloway Head and Blucher Street which will see 484 apartments built to rent.
The project has been the subject of proposals dating back to the early 1990s when previous plans included a casino and hotel.
The site, which High Street Residential acquired last year, comprises derelict land, a car park and Trefoil House, the headquarters of Girlguiding Birmingham.
Construction on the 17-storey, first phase of the project, known as ‘Holloway Head’, is set to start this year.
John German, managing director of residential investments at Invesco Real Estate, said: “Birmingham is our third major UK regional city of investment following our commitments in Liverpool and Manchester.
“Adding Birmingham to our growing portfolio is a great next step due to its positive market outlook, growing reputation as a business destination and positive rental growth outlook.
“Holloway Head marks the 12th asset in our UK Residential Fund, bringing our assets under management to around £580 million and approximately 2,279 units across the UK.”
Holloway Head’s residential credentials were boosted in 2015 when a former Debenhams warehouse was reborn as Concord House, a small complex of high-end units which included Birmingham’s most expensive city centre apartment at the time.
The penthouse with four separate balconies was sold for £1.8 million.
Gary Forrest, chairman of Newcastle-based High Street Group, said: “Birmingham is undergoing significant regeneration and represents a great place to invest.
“Local demand for professionally managed, purpose-built rental accommodation is rising quickly and, in response, we are creating high-quality living spaces, future proofed through the use of the latest smart technologies.
“I am delighted that Invesco Real Estate has agreed to partner with us to develop Holloway Head.”
High Street Group is also behind the £133 million redevelopment of the historic former Kent Street Baths site, off the A38 Bristol Street.
It will contain 580 apartments, and Westminster Works in Digbeth, a £50 million, eight-storey scheme of 220 units.