Midlands developer launches BTR investment arm

Midlands developer Seven Capital has launched a new build-to-rent platform with a goal to amass a portfolio of at least 5,000 flats within five years. Seven Living aims to capitalise on the rising demand for affordable rental apartments with shared amenity space in UK cities, providing long-term investment opportunities. It will see the group fund, build and hold rental buildings as part of a drive to increase annual output from around 1,200 homes to up to more than 8,000 a year. Seven Capital has promoted Damien Siviter as group managing director to spearhead an ambitious residential drive. Siviter said: “We are diversifying, moving into different sectors within residential and also different regions. Seven Living is the build-to-rent brand. It is in its infancy – we have been working on it for under a year. “For a long time, there hasn’t been much crossover. Developers have remained developers, investors have remained investors. I think you have to be a little more dynamic now.” It will look to develop BTR schemes in key cities across the North, the Midlands and the South, particularly around the M25 doughnut and the M4 corridor. The developer will pursue a “blended strategy” of counter-cyclical sales and rental revenue on large sites of up to 2,000 homes. “With the larger schemes we will be looking to do traditional build and sale, along with separate standalone BTR blocks, with similar facilities,” he added. This means private cinemas, Wi-Fi cafes, gyms and conferencing facilities, similar to those available on recent developments in Bracknell and Birmingham’s Digbeth (pictured). “What we are tending to look at now is providing lifestyle within our sites. It is about creating a place to live, rather than just be. We are trying to create communities, with winter gardens, public open space and more shared amenities,” said Siviter. The group will seek to scale development across three business divisions: the BTR brand Seven Living, the existing private sale apartments business Seven Capital, and the recently launched housing business Seven Homes. Seven Living will look to deliver 5,000 to 10,000 homes in five years. Seven Capital will seek to double with a target of 2,500 to 5,000, and Seven Homes is aiming for 700 to 800 a year. Siviter said: “It is ambitious but realistic. We have the pipeline, the people and the funding.” Seven Capital launched in 2009 as a commercial developer with headquarters in Birmingham. The group has grown to 130 employees with a portfolio of 6,500 homes and 7.8m sq ft of commercial space delivered and in the pipeline. To send feedback, e-mail emma.rosser@egi.co.uk or tweet @EmmaARosser or @estatesgazette