Cording Real Estate invests in the UK
Cording Real Estate Group, part of Rothschild, has acquired a project development in Birmingham.
Cording has acquired the project development for the Cording UK Residential Investment Fund. The fund has a target volume of 400 million pounds and invests on behalf of continental European investors in the so-called Private Rented Sector (PRS).
The fund will finance a £49.7 million build-to-rent development by developer High Street Residential as part of a forward funding deal, it said. The development is being built on a 2.2-acre site on the site of the former Kent Street Baths in Birmingham. It will include retail space, a café, a gym, a community center and at least 262 one- and two-bedroom apartments for rent.
Construction is scheduled to begin in January 2020 and is expected to be completed in June 2022, according to a statement from Cording.
The Cording UK Residential Investment Fund was reportedly launched in August 2018 with equity commitments of more than 100 million pounds from German institutional investors. It is currently in the process of raising equity commitments of a further £150 million from continental European institutional investors, it said.
Leverage will provide the fund with over £400 million to build a diversified portfolio of PRS properties, he said. In doing so, the fund will focus on the low to mid-market segment, targeting regional cities and locations outside central London.
The Birmingham purchase is the fund's fourth acquisition. Previously, the fund invested in Leicester, Warrington and Nottingham. (ah)