London:

BBS Capital secures development loan for Birmingham resi project

BBS Capital has closed a facility with Alpha Property Lending to provide a peak debt loan to fund the construction of 438 new homes by a joint venture between Galliard Homes and Wavensmere Homes. The nearly five-acre site on Belgrave Middleway, Birmingham, will be a new neighbourhood in a centrally located area in the city, featuring high-quality architecture and substantial amenity and green space. The homes will benefit from shared, secure courtyards and private amenity gardens, in addition to multi-functional public space, and ample car and bicycle parking spaces.

Built over three phases, construction started this month with the completion of the final phase expected in 2024. The site had initially been acquired by Galliard Homes and Apsley House Capital and will be delivered in a joint venture between Galliard Homes, Apsley House Capital, and Wavensmere Homes, with Wavensmere taking the lead on the delivery of the scheme. BBS Capital will also retain a minority interest in the project, which has a gross development value of more than €117.5m (£100m).

The deal represents the latest residential development facility that BBS Capital has advised on. In the past 12 months alone, the debt advisory firm has financed projects in the build to rent, build to sell and co-living space with over 2,000 units combined.

Adam Buchler, Managing Director at BBS Capital, said: “This financing will help to deliver much-needed, high-quality homes in England’s second city. Introducing our longstanding clients and partners Wavensmere Homes and Galliard and running a competitive process to identify the best solution to fund this project, illustrates how we use our relationships among lenders and developers to achieve mutually beneficial results.”

Benjamin Philips, Head of Property Lending at Alpha Property Lending, said: “We’re delighted to have closed this debt facility with Galliard and Wavensmere, supporting the development of hundreds of new homes in the midlands of the UK. We look forward to seeing it develop.”

David Hirschfield, Legal Director at Galliard Homes, said: “Working in partnership with Apsley House Capital and Wavensmere Homes, we are building a new neighbourhood for Birmingham. Featuring quality architecture and ample green space, it will no doubt become one of the city’s living hotspots as it completes in three stages over the next three years. The process to find a suitable lender was highly competitive but seamless and we look forward to expanding our relationship with both BBS and Alpha.”

James Dickens, Managing Director at Wavensmere Homes, said: “This loan marks the exciting next phase in developing these new homes and this beautiful new neighourhood. The commercial attractiveness of this loan is a testament to the strong liquidity in the debt markets for high-quality schemes such as this one.”

Published: 10 June 2022

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