Gatehouse UK Private Rented Fund I, advised by Gatehouse Bank, has agreed to forward fund a £10.2m Build to Rent scheme in the West Midlands, which is set to create 66 new family homes.
The investment will fund the construction of the scheme at Raleigh Street, Walsall, consisting of 23 two-bed, 39 three-bed and 4 four-bed houses, which is being built by Vistry Partnerships.
Paul Stockwell, chief commercial officer at Gatehouse Bank, said: “This is another example of our intention to fund developments in the single-family housing sector, providing attractive, affordable and professionally managed homes.
“The Raleigh Street site has remained dormant for eight years so this is a fantastic regeneration opportunity that will provide a significant number of family homes.
“It’s been a great first deal with Vistry Partnerships and we look forward to developing our relationship with them.”
Colliers International acted as property advisers, and Dentons as legal advisers on the transaction.
This scheme will form part of the second Build to Rent Fund advised by Gatehouse Bank which, since its establishment in December 2015, has spent circa £90m on the construction of 684 single family houses across the UK.
Following the completion of Raleigh Street, the fund will comprise of a 750-unit single family housing PRS portfolio.
The portfolio is being managed through a Build to Rent platform, Ascend Properties.
James Warrington, divisional managing director at Vistry Partnerships, said: “This is a large mixed tenure development opportunity for us in Walsall with great links to major nearby cities.
“It represents a significant contribution to the new-build local housing market in the area and we’re delighted to be able to work with Gatehouse Bank on it.”
Work on the Raleigh Street site in the Birchills area of Walsall began in September last year and is expected to be concluded by the summer of 2022.
The land was previously occupied by the Harvestime Bakery, which at its peak was one of the biggest employers in the area but has stood vacant for years after the business stopped operating in 2012.
The mainly residential area is within walking distance to the centre of Walsall. It is just a 10-minute walk from the Crown Wharf retail park and a 15-minute walk from Walsall train station with direct connections to Birmingham New Street.
Edward Marsden, senior surveyor in Colliers International’s Build to Rent team, said: “This is an exciting first deal between Gatehouse and Vistry Partnerships, which will provide much needed, high quality rental accommodation less than a mile away from the town centre of Walsall.
“This union of investor and developer will be a winning combination for this location and hopefully in many more.”
This post has originally been featured in Property Wire.