Fortwell Capital has provided a €35m (£30m) loan to Essex Street (Properties) Ltd, a UK based property development company, to support the construction of South Central, a new 28 storey residential tower in central Birmingham. Standing at 88 metres tall, the development will deliver 154 purpose-built apartments for private sale in a striking new building on the corner of Bristol Street and Essex Street. The building is well located in the heart of Birmingham’s prominent Southside District, on the edge of the city’s Chinese Quarter and a short walk from Birmingham’s Grand Central, Bullring and New Street station.
The deal continues Fortwell Capital’s strategy of targeting high specification residential and commercial schemes in key regional cities, where there is accelerated demand for contemporary living. Developed to match the growing demand of Birmingham’s younger residential market, South Central is a community living project, incorporating low carbon design features, outstanding communal spaces and a range of leisure and lifestyle amenities for the post-COVID world.
LEXI Finance conducted the tendering process on the behalf of the developer and fully met their requirements by securing a fully-funded construction facility. Contractor Wates Group will be delivering the scheme, having already successfully delivered both Bank projects.
Nick White, Associate Director, Fortwell Capital commented: “The loan represents an opportunity to support the delivery of a first-class residential development in a key commercial area. The team behind South Central has a clear vision for the scheme underpinned by their development expertise and understanding of the evolving demands of the local market. It’s an exciting time to be lending into Birmingham on schemes like South Central, which offers a range of exceptional accommodation aligned with the long-term growth prospects of the city. We are grateful to LEXI for the introduction and their role in the negotiation between multiple stakeholders.”
Charlie Armstrong, co-founder at LEXI Finance, commented: “This is another statement piece from the team behind the Bank towers, cementing their legacy in the city and their impact on Birmingham’s skyline. This track record, along with the strength of the counterparties and the quality of the design, made the project very appealing to the debt market. After conducting a competitive tender process, Fortwell offered the most compelling terms and remained pragmatic throughout, particularly given international stakeholder involvement. Our thanks to all involved.”
Mark Holbeche, of Essex Street (Properties) Ltd, commented: “Birmingham’s development landscape is shifting towards true city living, and the funding from Fortwell will enable our experienced and agile team to continue to play a key role in this shift. LEXI Finance managed the process from initial finance tender through to completion faultlessly, and we’re very grateful to Charlie specifically for establishing this new partnership. The Fortwell team has demonstrated professionalism and agility throughout this transaction with an understanding of the regional market and our objectives. Now we turn our focus to bringing another new residential landmark to the heart of Birmingham and welcoming Fortwell’s expertise to support the delivery of our vision. We also look ahead to bringing a pipeline of further exemplary schemes to the Birmingham marketplace.”
