Developers vie for £1bn Brum Smithfield

By Paul Norman - Thursday, July 12, 2018 15:15

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Delancey, Qatari Diar and APG and their newly formed Delancey Oxford Residential (DOOR) partnership with Oxford Properties is in the final hunt against Australia's Lendlease for one of the UK's largest regeneration opportunities, the £1bn Smithfield scheme in Birmingham, CoStar News understands.

Birmingham council advised by Cushman & Wakefield launched a search for a developer for Birmingham Smithfield, the site of the city’s former wholesale markets last year.

The selected developer will work with the city council in "realising the vision for the 42 acre site set out in the Smithfield masterplan for a landmark, sustainable, mixed-use development including a family and leisure hub, supported by retailers, restaurants, hotels and a public square as well as a residential neighbourhood and integrated transport facilities".

CoStar News understands that the final shortlist comprises Delancey, APG and Qatari Diar with its Delancey Oxford Residential (DOOR) and Australia's Lendlease with a decision expected shortly.

Located in the heart of Birmingham city centre, adjoining the Bullring shopping centre, New Street station and the new HS2 rail terminus, the development of the site is expected to deliver over 3m sq ft of commercial, 2,000 homes and 3,000 new jobs and an investment value of over £1bn.

Yesterday it was confirmed that built to rent group Get Living had recapitalised with £600m of new co-investment from Oxford Properties to help drive forward its growth target of 12,500 new homes with a value of circa £5.5bn. The platform continues to be backed by Delancey, Qatari Diar and APG.

DOOR will take approximately 39% ownership of the current Get Living portfolio which comprises over 2,000 existing homes across two London schemes at East Village, the former Athlete’s Village on the Olympic Park in Stratford, and Elephant Central in Elephant and Castle.

These schemes sit alongside a development pipeline of approximately 4,400 homes, both at East Village and Elephant & Castle as well as two sites in the key regional cities of Glasgow and Leeds.

Minded to grant planning has recently been secured in respect of the future development of the E&C and Glasgow sites. APG and Qatari Diar will hold 39% and 22%, respectively, of the portfolio.

The partners said in a statement that Future opportunities will consist of "neighbourhoods with a minimum of 400 build-to-rent homes, and will comprise residential-led, mixed-use schemes with complementary student, co-living, retail, leisure, culture, hospitality and educational uses. Delancey with Oxford and Qatari Diar will continue to act as Development Managers on the various schemes. Get Living is targeting a portfolio of over 12,500 homes".

All parties declined to comment.

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