Developers Richardson and Ask Real Estate have secured £57m funding for the continuing development of the Tower Work build-to-rent (BTR) site in Holbeck.
The funding is coming from Legal & General’s Build to Rent Fund and Access Development Partnership (a joint venture between Legal & General Capital and PGGM).
Having secured planning for Phase 1 of the scheme last year, Richardson and Ask Real Estate will act as developers for Legal & General’s latest 245-unit BTR development at Tower Works. They appointed Sir Robert McAlpine as main contractor for the two apartment blocks back in June 2019. [See previous report here.]
The delivery team also includes consulting engineer WSP, quantity surveyor Faithful & Gould and Ryder Architecture.
Recognising the prospect for rental growth in Leeds, Legal & General has acquired two BTR sites in the city centre: Mustard Wharf in 2017, and now Tower Works. Both sites are central to the city’s South Bank regeneration area by the railway station, and together will deliver 500 apartments for rent, alongside over 16,000 sq ft of commercial space.
Dan Batterton, senior fund manager for BTR at LGIM Real Assets, said: “As Covid-19 drives secular changes and a fundamental rethink of many areas of the real estate sector, BTR has remained largely unaffected. It has delivered stable income returns throughout the crisis, with occupancy, rent collection and demand remaining high. In the last two weeks we have let our 1,000th apartment and welcomed the first residents to our Mustard Wharf scheme in Leeds. This continued demand further demonstrates the need for homes with functional space to work, alongside convenient access to local cultural and leisure amenities.
“The Tower Works development further strengthens our existing portfolio. Today, it has committed over £2bn in the sector, with nearly 2,000 operational apartments and a pipeline to deliver a further 7,000 apartments by 2025.”