Gatehouse UK Private Rented Fund I – advised by Gatehouse Bank and in which the bank is a co-investor, has agreed to forward fund a £10.2m Build to Rent scheme in West Midlands. The investment will fund the construction of 66 family Build to Rent homes at Raleigh Street, Walsall. The scheme will include a mix of 23 two-bedroom, 39 three-bedroom and four four-bedroom houses, which are being built by Vistry Partnerships. Colliers International acted as Property Advisors and Dentons as Legal Advisors on the transaction.
“This is an exciting first deal between Gatehouse and Vistry Partnerships, which will provide much needed, high quality rental accommodation less than a mile away from the town centre of Walsall. This union of investor and developer will be a winning combination for this location and hopefully in many more.”Edward Marsden, Senior Surveyor, Colliers International’s Build to Rent team
This scheme will form part of the second Build to Rent Fund advised by Gatehouse Bank which, since its establishment in December 2015, has spent circa £90m on the construction of 684 single family houses across the UK.
“Gatehouse has a proven track record of delivering much-needed homes around the UK by successfully investing in and managing Build to Rent schemes. This is another example of our intention to fund developments in the single-family housing sector, providing attractive, affordable and professionally managed homes.
“The Raleigh Street site has remained dormant for eight years so this is a fantastic regeneration opportunity that will provide a significant number of family homes.”Paul Stockwell, Chief Commercial Officer, Gatehouse Bank
Work on the Raleigh Street site in the Birchills area of Walsall began in September last year – and is expected to complete by summer 2022. The land was previously occupied by the Harvestime Bakery, which at its peak was one of the biggest employers in the area – but since the business stopped operating in 2012, it has been vacant.
The mainly residential area is within walking distance to the centre of Walsall – a 10-minute walk from the Crown Wharf retail park and 15 minutes’ walk from Walsall train station which has direct connections to Birmingham New Street.
“This is a large mixed tenure development opportunity for us in Walsall with great links to major nearby cities. It represents a significant contribution to the new-build local housing market in the area and we’re delighted to be able to work with Gatehouse Bank on it.”James Warrington, Divisional Managing Director, Vistry Partnerships
Once the scheme is completed, the Fund will comprise of a 750-unit single family housing PRS portfolio – which is being professionally managed through Build to Rent platform, Ascend Properties.