28 February 2020
Shulmans advises on £55m Nottingham city centre deal
We are pleased to announce the completion of a deal which will see the development of a major multi-million-pound Built to Rent (BtR) accommodation scheme in Nottingham.
We recently exchanged the land and funding agreements on behalf of developer, Blocwork LLP, for the redevelopment of disused land off Queen’s Road adjacent to the railway station, replacing a former car park. The deal is worth in excess of £55 million.
Planning permission has already been secured for the 348-unit complex. A mix of upmarket studio, one, two and three-bedroom homes will be built for long-term rent. The complex will also feature a roof terrace, gym and mixed-use commercial space on the ground floor, as well as 47 parking spaces and 264 cycle storage spaces.
The site is currently owned by Network Rail which, together with development company bloc Group, have formed the joint venture, Blocwork LLP. It seeks to regenerate key Network Rail owned sites which are currently "under-utilised to maximise their potential" across the UK.
Prior to works commencing on the site, the property will be sold to investor Grainger Residential Limited who will forward fund the BtR scheme.
Associate in our Commercial Property team, Kate Johnson, led the property aspects of the transaction - including site acquisition, the sale to Grainger and the Development and Funding Agreement, whilst Maria Fert and Sarah Wilson dealt with the construction documentation relating to the deal.
Kate Johnson said: “We have a long-standing relationship with Blocwork and it has been a pleasure to work with the team to secure this BtR scheme. The recent growth in the BtR sector is a sign that investors remain keen to benefit from rising property prices and rising rents, and the proximity of the Queen’s Road site to the railway station makes it a prime BtR location. Grainger has clearly taken care to create a development of high-quality design for long-term investment purposes. The benefit of BtR schemes to local communities, providing much needed homes, is clear to see and we are delighted to have been involved in this collaboration.”
Richard Thomas, Development Director at Blocwork LLP said: “We are delighted to have completed the deal, and our thanks go to Shulmans, Grainger and the wider project team as the collaborative effort of all parties was key to its success. The Queen’s Road development is a fantastic example of how BtR schemes can be secured outside of London, and it will contribute significantly to the regeneration of Nottingham and the city’s southern gateway. Shulmans has been incredibly proactive in providing invaluable advice to steer us through the complicated legal issues associated with bringing forward a development of this nature in joint venture.”
Construction is expected to commence later this year, with a target completion date in 2022.