Pan-European real estate investment manager – MARK – has entered the UK Build to Rent market in a partnership with residential developer – HUB. The partnership has acquired 2 Snow Hill Plaza in Birmingham’s Snowhill district from a global institutional investor, with the intention to develop a Build to Rent scheme. CBRE advised HUB and MARK and BNP advised the vendor.
The existing building on the site at 2 Snow Hill Plaza has been vacant for over a decade. It will be redeveloped into high quality Build to Rent homes alongside new public realm, mixed ground floor commercial space and onsite resident amenities.
This is the first deal that HUB and MARK have partnered on – and the two companies are already exploring other opportunities to work together. Future acquisitions are planned as part of MARK’s diversification strategy, which will see the firm grow its residential exposure.
“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 Build to Rent development and we look forward to developing our relationship further.”Lily Lin, Managing Director, UK & Ireland, MARK
MARK also recently partnered with Credit Suisse for the first phase of its DOMA platform, which aims to amass a €1bn pan-European rental housing portfolio. Alongside its joint venture partners, the company is currently redeveloping the former Whiteleys department store into a £1bn residential-led mixed-use project. MARK also previously created Meyer Homes, a build-to-sell residential platform which acquired 13 sites around Greater London.
For HUB, 2 Snow Hill Plaza will be its second Birmingham Build to Rent project following planning permission for a major canalside regeneration scheme in Digbeth in November 2020. The scheme will deliver 2000 new homes and will include Build to Rent, for sale and student accommodation. To date, HUB has completed £784m worth of Build to Rent deals.
This new acquisition continues HUB’s expansion into key lifestyle cities across the UK, with UNCLE Leeds and Latitude Blue schemes also moving forward in Leeds, and Beaverhall House and Leith Gas Works site acquisitions in Edinburgh, alongside projects under construction at Wembley Link in London and The Landing in Maidenhead.
“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.”Tom Starkey, Acquisitions Manager, HUB