Cording Real Estate Group has secured the fifth investment for its €473m (£400m) 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 development of up to 160 apartments by Aimrok Development on the site of Wellington House in the centre of Leicester. Planning consent has already been obtained for the conversion of Wellington House, a 52,673ft² building that was built in the 1970s on the site of an old newspaper printing works and hosiery in Wellington Street. A planning application has been submitted for an additional 64 new-build units to be constructed on the roof and in the courtyard increasing the overall size of the development to 160 units.
If the larger, 160-unit Wellington House development is implemented, the total forward funding package will be €29m (£24.5m). Construction, which will be carried out by Stepnell, will commence this month and is expected to be completed in the first quarter of 2022.
Wellington House will be the fund’s second in Leicester alongside Merlin Wharf which reflects Cording’s confidence in the city’s residential property market. The two developments are different in shape and form and are likely to attract different tenant profiles. Wellington House is located closer to the city centre and just a five-minute walk from the main railway station, from where the train journey to London King’s Cross takes around one hour, with trains running at least every 15 minutes. It will provide services, such as 100% fully-furnished apartments and wifi, cleaning and all other bills included within the rent. Cording operates a vertically-integrated platform and will provide lettings and management service for the completed development from its in-house PRS team.
Charlie Miller, director of residential acquisitions at Cording, said: “Cording’s proprietary research forecasts a sustainable high demand for affordable, professionally-managed accommodation in Leicester. Wellington House will provide low rise, Greenwich Village-style living that will appeal to tenants who want to live in the centre of Leicester”.