Northern European real estate investment management firm Cording Real Estate said on Thursday that it has made its first build to rent investment in the UK private rented sector (PRS).
Cording has entered into a forward-funding agreement of over £40 mln (€45 mln) with the Cassidy Group and Regency Project Management Limited for a development in Nottingham.
The development, called Saffron Court, has planning consent for a mix of 350 studio, one- and two-bed apartments and 130 car parking spaces.
Construction of Saffron Court will begin this month, Cording said.
The investment is being led by Cording’s new UK PRS business, which was launched a year ago with the acquisition of specialist PRS company, CapRes. CapRes’ founders, Tim Holden and Charlie Miller, who have long experience in the UK PRS sector, currently head Cording’s new PRS platform.
The acquisition was carried out on behalf of Cording’s UK PRS Club 1, a closed-end vehicle set up for institutional real estate investors. The fund is planning to make further forward-funding investments in the PRS sector in the next few months with the aim of achieving double-digit investment returns.
'Nottingham is a compelling location for our first build to rent investment in terms of demographics, local economics and affordability,' commented Tim Holden, director of Residential Development and Asset Management at Cording.
'Over 300,000 people live in Nottingham, of whom 48% are under the age of 29, including a thriving student population. According to the ONS, the local economy is expected to grow significantly faster than UK averages by 2020, supported by its expanding healthcare and biotech sectors. Much of the housing stock in Nottingham is old and the supply of new dwellings has been very limited. As such, we expect strong demand for our completed product which has been designed specifically for the PRS market.'