A Newcastle-based PRS – private rental sector – specialist has struck a deal to buy a big chunk of a £200 million East Midlands redevelopment scheme.
Grainger plc has agreed to fund, buy, and then operate the build-to-rent element of the Becketwell regeneration scheme, currently underway in Derby city centre.
The scheme’s developer St James Securities said Grainger was paying £37.4 million to take on the 259 one and two-bedroom apartment complex as well as two commercial units.
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Demolition work is now underway to make way for the biggest regeneration project Derby city centre has seen since the Westfield Centre went up in 2007.
Detailed planning permission was granted for the build-to-rent apartments – phase one of the landmark Becketwell scheme – back in January.
A planned second phase could include a 3,500-capacity performance and conference venue on the site of Laurie House offices and the former Pink Coconut nightclub.
Further phases could include up to 250,000 sq ft of new grade A offices and commercial space and a hotel.
Grainger, which was founded in 1912, is the 海角视频’s biggest listed residential landlord and currently manages more than 9,100 homes across the 海角视频.
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The Derby apartments will be built on the site of a former Debenhams store in Victoria Street, next to a new public square which will be the centrepiece of the development.
The flats will include a rooftop terrace and ground floor amenities, with a staffed reception, gym and separate co-working space which will serve as an alternative to working from home.
There will be secure car parking, bike storage and electric car chargers.
It is Grainger’s first investment in Derby, and construction will start soon, with a Spring 2023 completion date.
St James Securities hopes regenerating the area will bring office workers, graduates and other city centre workers back into Derby and help boost activity outside of traditional retail hours.
It is also hoped that the investment proposed at Becketwell will provide confidence for further new investment in surrounding areas of the city centre.
More than 2,000 jobs are expected to be created by the development.
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St James Securities managing director Oliver Quarmby said: “We are delighted to be working with Grainger on this major BTR scheme which will deliver much needed residential accommodation in Derby city centre.
“Grainger are a well-established operator in the sector, with an amazing track record of delivery and a tremendous reputation with tenants.
“To have a FTSE 250 investor on-board with the Becketwell scheme is a massive vote of confidence in Derby and will act as a catalyst to drive subsequent phases of development on the wider Becketwell site.”
Grainger chief executive Helen Gordon said: “This acquisition in Derby is an exciting addition to our growing portfolio of high-quality rental homes in the Midlands, and our first scheme in Derby, a city which meets our strict investment criteria.
“Demand for high-quality rental homes in the city continues to grow, and this scheme will add greater scale to our Midlands cluster, improving our ability to drive efficiencies while delivering a great service to our customers.”
Coun Matthew Holmes, deputy leader of Derby City Council, said: “It’s fantastic to see this important component of the Derby Recovery Plan moving ahead at such a crucial time. This huge investment by Grainger shows the confidence in Derby as a City to build back better.
“The ambitious development at Becketwell will diversify the economy and is a prime example of how we are creating a modern, SMART city, with jobs for the future.
“We are proud of the vital role Derby City Council played in assembling the land and securing the D2N2 LEP investment enabling this collaboration with the private sector.”