A Swedish residential property company has made its UK debut by forward funding a new housing development in Birmingham.
Heimstaden Bostad has agreed a £160 million deal with joint venture team Galliard Homes and Apsley House for the canalside Soho Wharf scheme in the city's Ladywood district.
The company currently has more than 114,000 homes under management at a value of around £15 billion but this is the first time it has taken on a development in the UK.
Soho Wharf is being built on derelict land opposite City Hospital at the corner of Dudley Road and Heath Street South.
It will comprise 650 apartments and 102 townhouses for rent, along with 10,000 sq ft of commercial space, 300 parking spaces, new public realm and routes for pedestrians and cyclists.
Construction work started in March on the scheme which will have a series of buildings reaching up to 14 storeys over a 11.6-acre site which adjoins both the Old Line and Main Line canals.
More than 100,000 sq ft of brick and corrugated iron industrial buildings and warehousing, which have been largely unoccupied and derelict for years, were removed from the brownfield site to make way for the new development.
The first phase of the project comprising 318 apartments will be available from the end of next year and the whole development is due for completion by 2024.
Soren Vendelbo Jacobsen, co-chief investment officer at Heimstaden Bostad, said: "An entry into the British market is in line with our strategy to expand into strong and attractive European markets.
"By providing high-quality yet affordable homes in an up-and-coming area, we are well-positioned to capitalise on the growing rental market in Birmingham and the UK."
Birmingham City Council leader Coun Ian Ward added: "This is an important development that will bring much-needed, high-quality and affordable homes to the city.
"The fact this is Heimstaden Bostad's first investment in the UK is a vote of confidence for Birmingham and reinforces our reputation as a great place to do business.
"The council has ambitious plans to grow the city and, with the arrival of the Commonwealth Games next year with HS2 to follow, we can look forward to exciting times ahead as we consolidate Birmingham's position as the UK's premier destination for inward investment."
Savills and Howard Kennedy acted as advisers to Galliard Homes and Apsley House Capital while Heimstaden Bostad was advised by Clifford Chance, Arcadis, KPMG and FTI Consulting
