Aberdeen Standard backs Birmingham BTR with £60m fund

Aberdeen Standard has committed to a £60m investment for the 259-flat BTR scheme at Lionel House in Birmingham’s city centre. The finance is the first UK investment from the Aberdeen Standard Pan-European Residential property fund (ASPER). Aberdeen will forward fund Stamford Property Investments’ redevelopment of the 10-storey post office building on Lionel Street, between the Jewellery Quarter and Paradise Circus development. Enabling work on the development is underway and will see the tower increase to 14 storeys, with completion expected in summer of 2021. The apartments will be marketed and managed by JLL. Ed Crockett, fund manager at Aberdeen Standard Investments, said: “This deal underlines our confidence in the UK private rented sector.” He pointed to a the UK’s growing PRS sector, set to increase by 24% by 2022 and the high levels of investment in Birmingham over recent years. “Driven by strong underlying economic fundamentals and flourishing employment, the city’s vibrant residential rental market is showing robust supply and demand dynamics, which makes it a natural fit with ASPER’s investment criteria,” he added. Dowbrae, Knight Frank and Hogan Lovells represented Aberdeen Standard Investments. Lionel House Developments was represented by DougraySmith and Teacher Stern. Aberdeen Standard Investments has a portfolio of more than 15,000 homes across Europe and the UK, with an additional 3,400 under construction and a combined total value of around £5.8bn. ASPER has raised £352.9m (€398.2m) with the intention to reach £1.33bn (€1.5bn) in assets under management over the medium term. To send feedback, e-mail emma.rosser@egi.co.uk or tweet @EmmaARosser or @estatesgazette