US investor Harrison Street has expanded its build-to-rent (BTR) joint venture with UK investment manager Apache Capital and NFU Mutual to fund Moda Living’s Great Charles Street, a 722-home BTR development in Birmingham, UK, with a £302 mln (€343 mln) gross development value.
The JV, which was formed in 2018 to fund premium BTR developments across the UK, now includes six assets, representing a total of 3,050 homes. In addition to Great Charles Street, current projects include Moda, The Mercian, also in Birmingham, Moda, The McEwan in Edinburgh, Moda, The Lexington in Liverpool, Moda, New York Square in Leeds, and Moda, Holland Park in Glasgow.
The announcement marks the largest regional BTR funding deal completed in the UK. Moda will develop, manage and operate the £302 mln Great Charles Street asset, which is set to begin phased delivery in October 2025.
The development is one of the largest regeneration projects in Birmingham City Centre and within walking distance to key leisure destinations. Once completed, it will offer 722 homes for rent, ranging from spacious studios to three-bedroom apartments.
Residents will benefit from a range of luxury finishes and amenities, including a rooftop terrace and BBQ areas, gym with personal training and classes, bicycle storage, washing and repair station, residents’ lounges, private dining, cinema room, meeting rooms and co-working space and secure parking, as well as a 24-hour concierge and onsite security.
Paul Bashir, Chief Executive Officer of Harrison Street’s European business, said, ‘The Birmingham market is backed by strong demographics, with the greatest concentration of businesses outside of London and home to many leading universities. This transaction underscores our continued efforts to invest in premium BTR assets in leading markets across Europe.’
John Dunkerley, CEO at Apache Capital, said, ‘Today’s announcement – the largest regional build-to-rent funding deal to date - underlines our conviction in build-to-rent as a major institutional asset class. It also demonstrates the enduring appeal of our highly amenitised, highly serviced model, which has been proven by the success of our first Birmingham asset, The Mercian.’
Will Jordan, partner at Knight Frank, said, ‘This is a landmark deal for the UK's BTR market. As the biggest agreement ever signed outside of London, Moda, Harrison Street, NFU Mutual and Apache have blazed a trail in what is a huge show of confidence for a market that continues to go from strength to strength despite challenging economic headwinds. We're delighted to have advised the parties to help them reach this fantastic milestone.’
Harrison Street’s European strategy encompasses alternative investments in student accommodation, senior housing, build-to-rent residential, and life sciences real estate. The Firm’s build-to-rent platform in Europe includes 16 assets totaling approximately 5,650 units across the UK, Spain and Ireland. The portfolio includes eight assets in the UK with over 3,000 residential units developed to date in partnership with local developers and operators.