Europa buys Birmingham BTR

Europa Capital has agreed a forward funding deal for a £45m build-to-rent scheme in Birmingham. The acquisition of Crown Works, on behalf of the value-add fund Europa Fund VI, is Europa’s first BTR investment in the city, after schemes in Manchester, Sheffield and London with Mitsubishi Estates. Developer Czero secured planning consent for 203 flats in blocks of up to seven storeys last year. The scheme includes 5,900 sq ft of flexible amenity space, including a gym, co-working, private dining and concierge. The homes will have an EPC rating of B and will use green energy from the rooftop solar panels. The scheme has a gross development value of £45m and is expected to generate around £2m a year in rents, equating to a 4.5% yield, according to a valuation from Highgate Land and Development submitted at planning. Construction of the 138,000 sq ft building is set to begin imminently with practical completion due in the first quarter of 2024. Hugo Black, partner at Europa Capital, said: “This is our first foray into the Birmingham market, which, as the UK’s second largest city and with a burgeoning young population – thanks largely to being home to one of the country’s leading universities – is an attractive location for this type of residential product. “A number of blue-chip companies have also chosen Birmingham as their regional hub, reflecting the role the city has to play in the levelling up agenda.” To send feedback, e-mail emma.rosser@eg.co.uk or tweet @EmmaARosser or @EGPropertyNews Photo: Claridge Architects