Cording Real Estate Group, the European real estate investment and asset management firm, is to forward fund a build-to-rent development in the Lace Market area of Nottingham by Abode Nottingham for £17.3 million, as part of its new £400 million Cording UK Residential Investment Fund which invests in the private rented sector (PRS) on behalf of Continental European investors.
Located on High Pavement and Short Hill, the development will involve a mix of refurbishment of Grade II-listed buildings and new build. It will provide 117 studio, one and two-bed apartments for rent.
Construction is expected to commence on site in the first quarter of this year and is expected to be completed in the first quarter of 2021.
The lettings and management services for the completed development will be provided by Cording’s in-house PRS team.
Charlie Miller, Director of Residential Acquisitions at Cording, said: “This is our second PRS project in Nottingham after Saffron Court in Crocus Street, which reflects our enthusiasm for the city in terms of demographics, local economics and affordability.
“Half of the population is under the age of 29 and that includes a thriving student population. Much of the housing stock in Nottingham is old and the supply of new dwellings has been very limited. We expect strong demand for the apartments.”
The Cording UK Residential Investment Fund was launched in August 2018 with equity commitments of more than £100 million from German institutional investors. Cording is expecting to raise an additional £150 million of equity commitments from Continental European institutional investors. Using leverage, the fund will have £400 million to create a diversified portfolio of PRS assets, delivering sustainable and stable distributions over a long-term holding period.