MARK and residential developer HUB have acquired 2 Snow Hill Plaza in Birmingham from a global institutional investor, with the intention to develop a build-to-rent scheme. An existing building on the site, vacant for more than a decade, will be redeveloped into high-quality homes for rent alongside new public realm, mixed ground-floor commercial space and on-site residents’ amenities.
HUB has completed €938.5m (£784m) worth of BTR deals to date. This is the first deal on which HUB and MARK have partnered, with the two companies already exploring other opportunities to work together in the future. The acquisition marks MARK’s entrance into the UK BTR market, with future acquisitions planned as part of the investment manager’s diversification strategy, which will see the firm grow its residential exposure.
2 Snow Hill Plaza will be HUB’s second project in Birmingham, after achieving consent for a 2,000-home mixed-use scheme in Digbeth in November 2020. The acquisition continues HUB’s expansion into key ‘lifestyle’ cities across the UK, with schemes also moving forward in Leeds and Edinburgh, alongside projects under construction in London and Maidenhead.
Tom Starkey, Acquisitions Manager at HUB, commented: “HUB is delighted to have acquired another site in Birmingham, a city with strong growth fundamentals and a forward-thinking City Council. Following a successful 2021 in which HUB completed four acquisitions, we are carrying this momentum into 2022 with our first deal with MARK. We hope to build on this relationship with further acquisitions in the future. Our return to Birmingham sees HUB move into Snow Hill, a particularly exciting part of the city given its proximity to workplace and amenity and the continuing demand for high-quality housing. HUB is excited to work closely with Birmingham City Council and local stakeholders to bring forward thoughtful regeneration here.”
Lily Lin, Managing Director, UK & Ireland, at MARK commented: “Residential for rent forms a key part of our multi-platform strategy, as we look to grow our presence in asset classes that are underpinned by long-term structural growth drivers and have demonstrated resilience during the pandemic. This acquisition will be the first of many as we look to create a wider UK build-to-rent platform that complements our existing residential strategies. With a long and proven track record of delivering high-quality schemes, HUB is an excellent partner to be working with on our first UK BTR development and we look forward to developing our relationship further."