Residential People has learned that property developers, Richardson and Ask Real Estate, have secured nearly £60 million-worth of funding to deliver a major new Build to Rent (BTR) scheme in Leeds City Centre.
Legal & General’s BTR Fund and Access Development Partnership (a joint venture between Legal & General Capital and PGGM), have lent £57m to Richardson and Ask Real Estate to aid with the development of the 245-unit ‘Tower Works’ BTR site.
Commenting on the upcoming scheme, Ben Holmes, Real Estate Director for Richardson, said: “Tower Works is one of Leeds’ most exciting residential development opportunities.
“We are very proud to have secured funding with Legal & General to bring this superb site forward and create much needed new homes for the city.”
Having secured planning for Phase 1 of the scheme last year, Richardson and Ask Real Estate will act as developers for Legal & General’s latest BTR development.
Work is expected to begin on-site in the coming weeks and once complete, the new residential development will feature 1, 2 and 3-bedroom apartments to the south of Leeds railway station.
The Yorkshire city of Leeds is one of the UK’s largest cities in terms of population and economic output, yet the supply of housing in the city centre has been constrained over the past decade.
Recognising the prospect for rental growth in Leeds, Legal & General previously acquired another BTR site in the city centre; Mustard Wharf in 2017. Along with the upcoming Tower Works, the two sites will deliver a combined 500 homes and over 16,000 sq ft of commercial space.
Highlighting his firms’ progress so far, Dan Batterton, Senior Fund Manager, BTR, LGIM Real Assets said: “As Covid-19 drives secular changes and a fundamental rethink of many areas of the real estate sector, BTR has remained largely unaffected. It has delivered stable income returns throughout the crisis, with occupancy, rent collection and demand remaining high.
“In the last two weeks, we have let our 1,000th apartment and welcomed the first residents to our Mustard Wharf scheme in Leeds. This continued demand further demonstrates the need for homes with functional space to work, alongside convenient access to local cultural and leisure amenities.
“The Tower Works development further strengthens our existing portfolio. Today, it has committed over £2 billion in the sector, with nearly 2,000 operational apartments and a pipeline to deliver a further 7,000 apartments by 2025.”