QuadReal Property Group and Realstar have added to their multifamily holdings in the United Kingdom through the joint acquisition of a 603-unit complex in Birmingham’s central core. The purpose-built project encompasses three buildings with a shared central podium and amenities, offering convenient proximity to employment, university and entertainment districts and transportation hubs.
The new Canadian owners foresee continued high rental demand in the U.K.’s second largest city, based on an existing cohort of about 100,000 post-secondary students, projections for population growth and the relative rarity of high-end downtown rental options. Units in the complex, known as Allegro, are currently marketed in the range of ₤950 (CAD $1,672) to ₤2000 (CAD $3,520) per month.
The acquisition widens the geography of Realstar’s U.K. portfolio, branded as UNCLE, which also boasts properties in London, Manchester and Leeds. For QuadReal, it aligns with the purchase of other build-to-rent (as purpose-built is termed in the U.K.) developments in recent years.
“The living sector remains a key priority for us globally and a target area for growth,” says Jay Kwan, QuadReal’s Europe-based head of international real estate.
“Allegro will make an excellent addition to our U.K. portfolio,” concurs Realstar’s Ryan Prince. “We have plans to invest further in the asset to bring it up to our UNCLE brand standards.”