Investment manager Mark has joined forces with Hub to develop its first build-to-rent scheme.
The pair have partnered to buy 2 Snow Hill Plaza in Birmingham for £7.75m.
The 0.4-acre site sits opposite Snow Hill railway station and is close to Moda Living’s £260m scheme of 722 flats at Great Charles Square.
The scheme will be the second in Birmingham for BTR developer Hub, which recently secured planning consent for 2,000 homes in Digbeth, to the south of the city centre.
Hub acquisition manager Tom Starkey said the area was attractive “given its proximity to workplace and amenity and the continuing demand for high-quality housing”.
The acquisition follows Hub’s strategy to expand to regional cities as it grows its BTR portfolio to £1bn.
Last year, Mark, formerly known as Meyer Bergman, partnered with Credit Suisse to kick-start a €1bn pan-European portfolio. Mark is also redeveloping the former Whiteleys department store in Bayswater, W2, into a £1bn residential-led mixed-use scheme.
Lily Lin, managing director for the UK and Ireland at Mark, said: “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.”
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