Legal & General has announced on behalf of its Built to Rent (BTR) and Access Development Partnership (a joint venture between Legal & General Capital and PGGM), that it has agreed the funding of a £100m development site at Hockley Mills, set within the Jewellery Quarter Conservation Area in Birmingham town centre. 

The scheme is centrally located in one of the most sought after residential districts in the West Midlands and adjacent to both rail and tram links, the Hockley Mills site is on the periphery of the Jewellery Quarter. 395 apartments will be delivered with a mix of one, two and three bedroom dwellings, alongside a new entrance to the Jewellery Quarter train station, 116 car parking spaces and 28,000 sq ft of flexible commercial space for retail, leisure and offices.   

Dan Batterton, Senior Fund Manager, BTR, LGIM Real Assets, said: “In the space of the last few years, the BTR sector has really come into its own. It has cemented its position in the UK as an asset class and successfully evolved away from the private rented sector. Showing its resilience and relative counter cyclical nature of the residential sector, BTR has remained largely unaffected throughout the coronavirus pandemic, as occupancy, rent collection and demand has remained high.      

“The Hockley Mills development further strengthens our existing portfolio. The scheme will deliver high-quality, professionally-managed rental accommodation that can help to address the supply demand imbalance in Birmingham.” 

Legal & General was advised by global property consultancy Knight Frank and Sir Robert McAlpine will act as the developer for Hockley Mills.

Hannah Badger, Associate in the Residential Capital Markets team at Knight Frank, said: “Our view remains that, long term, the current Covid-19 crisis may well act as a catalyst for an acceleration of institutional capital into the UK’s residential investment sector. Since March 2020 activity has remained strong as investors seek to increase their exposure in the UK market. As the UK’s largest city outside of London, investment in Birmingham’s BTR market has always been strong. However thanks to the regeneration of the city centre and the upcoming HS2 line enabling even quicker links into the capital, demand by investors for high quality rental assets is certainly on the rise and is showing no signs of slowing down, despite the current wider market headwinds.”