Precede Capital Partners has provided a €213.7m (£188m) five-year whole-loan facility to a joint venture between Apache Capital, Harrison Street and NFU Mutual. The loan represents Precede Capital’s second since announcing its partnership with QuadReal Property Group. The facility will be used to finance the development of Great Charles Street, a €343.3m (£302m) (GDV) build-to-rent (BTR) development in Birmingham City Centre that will be developed, managed and operated by Moda Living.
Consisting of 722 residential BTR apartments spread across three blocks, the units will range from spacious one-bedroom apartments to three-bedroom apartments with exclusive views over one of Birmingham’s oldest districts, The Jewellery Quarter. Amenities will include a 24-hour concierge, cinema, residents’ lounges, co-working spaces and a gym, as well as over 20,000 square feet of commercial space targeted at local and independent businesses.
The site, which has been undeveloped for more than 50 years, is one of the largest regeneration projects in Birmingham City Centre. Completion of the first block is scheduled for late 2025, with the final block scheduled for delivery in early 2026.
The project will target BREEAM 'Excellent' for its commercial areas and a HQM four-star rating for its residential areas. The electric heating system via air source heat pumps, on-site renewables via solar PV and the sourcing of renewable energy for the site through the Renewable Energy Guarantees of Origin (REGO) scheme, will contribute to the project's strong energy performance and low Scope 1 and 2 emissions profile.
David Jerrard, Chief Credit Officer at Precede Capital, said: “We are pleased to be partnering with Apache Capital, Harrison Street, NFU Mutual and Moda on the Great Charles Street scheme, which will directly address rising demand for BTR options in Birmingham, a market characterised by structural under-supply. This latest loan, which is our inaugural deal in the Midlands, is testament to our ability to deliver sophisticated financial solutions for experienced sponsors and developers across the UK.”
John Dunkerley, Chief Executive Officer at Apache Capital, said: “We are pleased to have secured a development facility of this size – our largest to date – from Precede Capital in what are undoubtedly challenging market conditions. This reflects the quality of development we are delivering with Moda and the strength of our partners in Harrison Street and NFU Mutual. We have no doubt Great Charles Street will replicate the success of our first Birmingham build-to-rent development in Birmingham, The Mercian.”
Paul Bashir, Chief Executive Officer of Harrison Street’s European business, said: “We look forward to bringing Great Charles Street to the Birmingham market, which is in critical need of high-quality BTR assets. We are confident the strong demographics in Birmingham and high-quality finishes and amenities of the asset will support its long-term success.”
Johnny Caddick, Chief Executive at Moda Living, said: “Great Charles Street is going to raise the bar for rental living in Birmingham’s historic Jewellery Quarter. This debt funding from Precede is a vote of confidence in the Moda Living product and in the resilient BTR sector, and an integral piece of the puzzle in what is one of the largest regional funding deals in the UK BTR market. We look forward to working with our investors and funders on Great Charles Street as we transform this long undeveloped site into a new jewel for the city.”