Captima delivers compelling debt solution for PRS leader

Captima has assisted prominent North East developer High Street Residential secure funding to acquire two development sites in Birmingham city centre.

High Street Residential is part of the High Street Group and the acquisitions have taken their current commitment to private rented sector development and investment to over £350 million. Further acquisitions will follow with additional capital structured by Captima supporting a further £100 million of investment.

Captima have sourced and structured several debt facilities for High Street Group, the first of which enables the purchase of the former Westminster Works in Birmingham’s Digbeth regeneration corridor. A second facility has been delivered to enable the purchase of a substantial site on Holloway Head, close to the Mailbox retail centre. The gross development value (GDV) of the two initiatives is £160m creating over 700 apartments, designed to appeal to high earning young professionals whose lifestyles demand the flexibility of rented accommodation.

High Street Group chairman, Gary Forrest, commented “PRS is here to stay. Almost 19% of the UK population is renting privately and this figure is expected to grow significantly. In response, we are creating high quality living spaces, future proofed through the use of the latest smart technologies. There will be communal relaxation facilities, where people can meet, form friendships and build new communities. Our developments offer extremely attractive investment opportunities for institutional and individual investors who can enjoy yields and capital growth in excess of seven per cent per annum. These are non-volatile, high quality assets offering attractive, long term returns, which we can maximise for our partners.”

Mark Watson commented “We are pleased to play a part in the High Street journey to become one of the leading developers of Build To Rent. We look forward to working with Gary and his team on further exciting developments.”

Captima is at the forefront of the current wave of new financing and investment appetite which has emerged in recent months specifically targeting the UK Alternative Residential sector. Captima has teamed with specialist global asset managers and debt providers investing across the entire capital stack in Build To Rent real estate.