Cording Real Estate Group has secured the second deal for its new £400 mln (€450 mln) Cording UK Residential Investment Fund, which invests in the private rented sector (PRS) on behalf of Continental European investors.
The fund has agreed to forward fund a build-to-rent development in Warrington by High Street Residential, one of The High Street Group of Companies, for around £40 mln.
Located in John Street, in the heart of the Stadium Quarter regeneration area, the development will provide 362 one and two-bed apartments. Construction will commence on site this month and is expected to be completed in early 2021.
Charlie Miller, director of residential acquisitions at Cording, said: 'The site’s location, opposite the train station and within walking distance to Warrington’s town centre is very attractive for future residents and commuters to Liverpool or Manchester. Our project forms part of a wider regeneration of Warrington’s Central Station and is one of the first large developments to take place in the town for more than 10 years.'
The Cording UK Residential Investment Fund was launched in August 2018 with equity commitments of more than £100 mln from German institutional investors. Cording is expecting to raise an additional £150 mln of equity commitments from Continental European institutional investors. Using leverage, the fund will have £400 mln to create a portfolio of PRS assets.
The deal marks the second sale of high-quality PRS apartments by Newcastle-based High Street Residential.
Gary Forrest, chairman of The High Street Group of Companies, said: 'We are delighted to have signed this agreement with Cording, which is further evidence that PRS is here to stay.'