Heimstaden Bostad, advised by Clifford Chance, on their acquisition of Soho Wharf in Birmingham for €185.8m (£160m) from Apsley House Capital and Galliard Homes. This transaction marks Heimstaden Bostad's entry into the British real estate market. Soho Wharf is a sizeable residential newbuild project located just outside the city centre of Birmingham and is part of a wider plan to expand Birmingham to the west, converting former industrial areas into new neighbourhoods with generous public landscaping and high-quality architecture. The project consists of 752 homes, 3 commercial units and 300 parking spaces with 64 homes being offered at discounted market rents. The transaction is structured as a turnkey forward funding project with Galliard Homes as a developer and contractor. Heimstaden Bostad will fund the development based on construction milestones but does not take on direct development risk. Construction has already started and will be completed in the period Q1 2023-Q1 2024.
“An entry into the British market is in line with our strategy to expand into strong and attractive European markets. By providing high-quality yet affordable homes in an up-and-coming area, we are well-positioned to capitalise on the growing rental market in Birmingham and the United Kingdom,” said Soren Vendelbo Jacobsen, co-CIO at Heimstaden.
Patrik Hall, CEO of Heimstaden, commented: “We are excited to enter the British market and to deliver a good product that will be well received by our future tenants. With Birmingham’s population growth and positive outlook, we look forward to providing sustainable and Friendly Homes to the market."
Real Estate partner Alis Pay, who led the transaction commented: "We were delighted to advise Heimstaden Bostad on their entry into the UK real estate market having previously advised them in other jurisdictions through our European network. Given the huge demand in the UK for quality homes and the current housing shortage, this new development will deliver much-needed quality housing stock and connects with the UK Government's goal to achieve 300,000 new homes per year."