Author: Bianca Nicolescu

HGP, the Lloyds-backed equity investor in the UK Living sector, has committed £4.9 million of equity, alongside developer Urban Centric, to fund the delivery of Trafalgar House, a 310-bed purpose-built student accommodation (PBSA) scheme in Cardiff City Centre. It brings the total amount of equity that HGP has invested since 2015 to over £500 million, supporting a total of 88 partners and funding over 13,400 homes across the UK.

The Trafalgar House transaction is HGP’s second with Urban Centric. It will see a former office building refurbished and extended to deliver an eight-storey, EPC A rated 310-bed scheme, featuring a range of studio sizes across different price points. Amenities will include yoga rooms, lounges, cinemas and two roof terraces accessed from the eighth floor, alongside 132 cycle spaces. The scheme is situated in Cardiff city centre, less than 15 minutes’ walk from the main Cardiff University and University of South Wales campuses, as well as Cardiff Central Station.

Cardiff is a characterised by a significant undersupply of PBSA beds, with Trafalgar House representing the first new PBSA development for several years, which should help lower the increasing student to bed ratio.

Gowtham Jeeven, Investment Manager at HGP, commented: “This is our debut PBSA deal in Wales, and is fully aligned with our strategy of supporting best-in-class development partners to deliver sustainable, residential schemes in supply constrained markets.”

Mike Murphy, Investment Director at HGP, comment: “This transaction takes the total amount of equity HGP has committed since 2015 to over £500 million, which is a phenomenal achievement by the team. It demonstrates the uniqueness of our proposition, with partners attracted by our track record, funding certainty and deep expertise, including access to a 20-strong Senior Advisor panel, as well as our commitment to delivering meaningful social impact across the UK.”

Tom Larkin at Urban Centric, added: “Urban Centric, in partnership with HGP, is proud to deliver high-quality Purpose-Built Student Accommodation in Cardiff. This development reflects our shared commitment to creating modern, well-connected living spaces that enhance the student experience while contributing to the city’s vibrant community.”

Leading living-led developer HUB and sustainable investment specialist Bridges Fund Management have joined forces with HGP, the Lloyds-backed equity investor in the UK Living sector, to deliver Shore Station, a student-living scheme in Leith, Edinburgh. The joint venture will bring forward and then facilitate the operations of the 604-bed project, with BGO, the lender, providing a circa £79m development loan.

With enabling works already complete, McAleer & Rushe has been appointed to begin the next stage of construction, with completion targeted ahead of 2027/28 academic year.

The project, designed by Edinburgh-based Michael Laird Architects, will transform a former gasworks and naval yard into the largest single-site student-living scheme in the Scottish capital, featuring 604 ensuite rooms alongside amenity spaces and landscaped gardens with 50 new trees.

By reusing and repurposing all three of the existing historic buildings on site, important heritage will be protected. It also saves 3,260 tonnes of carbon in the process, when compared to what would have been required to construct entirely new buildings. The project will be delivered to the highest sustainability standards, targeting a BREEAM ‘Excellent’ rating.

Shore Station will offer an elevated student-living concept and campus, centred around a landscaped central square and courtyard garden, and within walking distance of The Shore, the sought-after Leith neighbourhood. Design-led internal and external amenity spaces – a substantial 8.3 sqm per person – will be spread across the campus-style development to prioritise wellbeing and collaboration. Features will include study rooms and collaboration spaces, a lounge, relaxation room, courtyards, herb garden, cinema, gym, and abundant cycle storage spaces.

Alongside a network of bus links, Leith benefits from access to the city’s tram line, providing a 15-minute journey to Edinburgh’s West End, Old Town and city centre, alongside access to Edinburgh’s four universities and their respective campuses.

Damien Sharkey, Managing Director at HUB said:

“Edinburgh stands out as one of the top student cities globally and there is a significant demand for additional housing for its student population, especially of the high standard that this project promises. HGP’s expertise and strategic vision perfectly complement our track record of creating excellent sustainable living spaces in well-connected areas, so we are proud to be partners on this unique project that builds on the fascinating history of Edinburgh’s coolest quarter.”

Simon Ringer, Head of Bridges Property Funds, said:

“Across the UK, there’s a significant under-supply of purpose-built student accommodation. In Edinburgh alone, there are more than three students for every available bed. As such, there is a pressing need for high-quality schemes like Shore Station. As with every Bridges and HUB development, we will be targeting the highest possible sustainability standards, while also supporting the wellbeing on residents through well-designed amenities and green spaces. We’re excited to see Shore Station come to life over the next couple of years.”

Colin Bennett, Investment Director at HGP, said:

“We are delighted to continue our support of the UK Living sector through our first joint venture with HUB and Bridges. The JV will deliver an iconic and sustainable scheme for Edinburgh’s student population, in what is a critically undersupplied market. We are excited to be working with our new partners. Their focus on heritage, sustainability and social impact aligns with HGP’s ethos, and we look forward to collaborating on such a prominent development.”

Jim Blakemore, Managing Partner and Global Head of Debt at BGO said:

“BGO are delighted to be the financing partner of such a high-calibre project and team. It aligns with our strategy of supporting best in class developments in prime locations that have a strong sustainability angle.”

Cole Waterhouse and Taurus Investment Holdings LLC, a US-based global equity real estate private firm through its UK arm, Taurus RE Investment Ltd (Taurus UK), have agreed a £60million Joint Venture with the Housing Growth Partnership (HGP), the Lloyds backed equity investor in the UK Living sector, and real estate lender BGO to bring forward the first phase of their Upper Trinity Street residential development (UTS) in Digbeth, Birmingham.

The first phase comprises three Build to Rent properties which will provide 211 new homes in a recognisably under-developed part of Birmingham.

Caddick has been appointed as main contractor, following the business’ expansion into the Midlands in 2023.Start on site has commenced with a two-year construction programme, and practical completion is expected in spring 2027. The joint venture has also received debt advice from Auxilium Real Estate.

Designed by Corstorphine & Wright, UTS is a £260 million mixed-use scheme which will deliver at least 943 new homes and a new public park for Birmingham.

Damian Flood, CEO at Cole Waterhouse commented: “Entering into a contract with Caddick enables us to undertake this exciting project with Taurus, Housing Growth Partnership and BGO. This is our first Joint Venture with the professional team at Housing Growth Partnership and we are all excited to bring forward the first phase of UTS, which will be one of the catalysts for the further regeneration of Digbeth, demonstrating our confidence in delivering much needed housing in this key part of the city.”

John McKeon, Investment Director, HGP said: ““We are delighted to be partnering with Cole Waterhouse and Taurus in helping to bring forward this exciting development which will help meet an unmet demand for housing in Digbeth and create a vibrant local community.   Cole Waterhouse and Taurus have a strong track record of delivery in the sector and we look forward to working together to support future opportunities.”

Nick Jacobs, Managing Director of Taurus UK said: “The start of construction on the first phase of this superb site feels very significant as it helps activate one of the most important growth areas in Birmingham.  We are really happy to be working with HGP, CWH, BGO and Caddick. A great team.”

The first two phases of the development will see the regeneration of a 5.2-acre industrial site into a vibrant cultural, commercial and residential scheme with permanent homes for the Pat Benson Boxing Academy, the Museum of Youth Culture and the Birmingham Music Archive. It will also include the creation of Pump House Park which will sit alongside the canal and the historic lockkeeper’s cottage which will be retained. 

The development is expected to create 600 jobs during the construction phase and up to 313 additional jobs once built.

ENDS

Press contact: Kate Healey / Clare Coyne, Inform Communications

07947735060, kate.healey@informcomms.co.uk / clare.coyne@informcomms.co.uk

About Cole Waterhouse

Cole Waterhouse is a UK developer with offices in Manchester and London.  The company focusses on a small number of significantly sized projects at any given time, ensuring projects receive the high levels of detail, attention and management they require and deserve. Cole Waterhouse has a proven ability to uncover under-recognised, off-market opportunities. Currently the firm is developing over 2 million sq. ft. of industrial space and over 2,000 residential units.

Visit www.colewaterhouse.co.uk for more information.

About Taurus

About Taurus Investment Holdings, LLC

Established in 1997, Taurus Investment Holdings, LLC is a global real estate private equity firm headquartered in Boston, MA. The firm focuses on strategic investments into value-add, core-plus, opportunistic and development opportunities.

Throughout North America and Europe, Taurus is consistently recognized as one of the premier owners of both directly managed and joint venture commercial real estate. To date, Taurus’ fully integrated real estate operating platform has acquired or developed more than 70 million square feet of commercial space across industrial, multifamily, office, mixed-use and renewable energy sectors totaling more than $11 billion in value. www.tiholdings.com

Taurus RE Investment Ltd is the UK arm of Taurus Investment Holdings and is partly owned by Rowan – the asset manager created by Nick Jacobs in 1997. It invested more than £50m of equity since 2022 and focuses mainly on BTR developments working with best-in-class partners. www.tiholdings.uk

About Caddick Construction Group

Formed of Caddick Construction, Caddick Civil Engineering and CCL Facades, Caddick Construction Group is a multidisciplinary specialist in all aspects of the built environment, and employs over 500 people across Yorkshire, the North East, North West and Midlands. In its last financial year, Caddick Construction Group reported a turnover of £318m, a pre-tax profit of £7.4m, net assets of £30m and a forward order book of over £700m.

Headquartered in Wakefield, Caddick Construction Group is a passionate investor in the future workforce. In its last financial year, the Group supported 20 T-Level students and 179 apprentices across its sites, and engaged with 76 schools and colleges as part of its Environmental, Social and Governance (ESG) Strategy, Places for Life.

About HGP

Housing Growth Partnership (HGP) is an equity investor in the UK Living sector. HGP was established in 2015 as a joint venture between Lloyds Banking Group and Homes England.

HGP has currently invested more than £472m of equity in a range of residential developments across the UK, working in partnership with property developers and other financial and real estate organisations to accelerate housing delivery. 

HGP investments have committed to deliver over 12,300 new homes (with GDV in excess of £3.8bn) across Build to Rent, PBSA, open market, retirement living and regeneration schemes.

Equity funding is a nascent funding model, but regarded as increasingly fundamental to unlocking UK housing delivery. Against the most restrictive financing backdrop since 2008, equity funders like HGP are enabling property developers who would find it difficult to get on site to bring forward new schemes, thus playing an important role in the regeneration of communities across the UK.  

Find out more here: https://www.housinggrowth.com/

The Development Bank of Wales and Housing Growth Partnership (“HGP”), the Lloyds-backed equity investor in the UK Living sector, have joined to invest more than £14 million into Edwards Homes’ delivery of a residential development in Connah’s Quay, North Wales.

The Development Bank of Wales’ £11.7 million loan for the project came via the Wales Stalled Sites Fund –its largest ever single property investment – with HGP also committing a further £2.7 million in equity.

Edwards Homes is a prominent regional housebuilder based in North Wales, providing versatile homes that have proven popular with first time buyers, professional couples, families and downsizers. It has delivered more than 350 homes over the last five years.

Located on the western edge of the town, the new development will comprise of 141 two-, three- and four-bed homes for sale, including 49 affordable homes that will be sold to North Wales Housing Association.

The development will continue to support Edwards Homes’ mission of providing high quality homes at affordable prices in the local area.  A financial contribution will also be made towards local primary school spaces and recreation spaces in the Connah’s Quay community. 

The investment builds on HGP’s record 2023, which saw it commit c. £110 million of equity across 30 schemes in the living sectors to support the delivery c. £815 million of GDV. HGP’s equity commitments brought the total number of homes that have been, or will be, delivered across the UK to over 10,000, outperforming HGP’s target to reach this milestone by 2025.

The £11.7 million from the Development Bank of Wales is one of the largest single investments made by the bank, which in 2023/24 invested more than £125 million into 430 businesses across Wales. The Wales Stalled Sites Fund provides traditional development loan funding for residential development projects with investment from £150,000 to £6 million available.

John McKeon, Investment Director, at HGP, commented: “This transaction continues our strong investment levels in 2024, reflecting the important role that HGP equity funding can play in bringing forward new schemes and the regeneration of communities across the UK.  We look forward to seeing Edwards Homes bring forward the delivery of much needed private and affordable housing in the region and also partnering with them on further schemes in their pipeline.”

Neil Edwards, Managing Director at Edwards Homes, added: “Edwards Homes Ltd is pleased to be partnering with Housing Growth Partnership for the first time.  We are also delighted to be collaborating with Development Bank of Wales again whom we have worked with on previous projects in the past and who continue to support Edwards Homes on this 141 unit development in Connah’s Quay. This is a fantastic opportunity for us to continue to expand and grow throughout North Wales and the North West of England.

“We believe that we are one the first developers that Housing Growth Partnership have collaborated with in Wales and we look forward to bringing this scheme forward together.

“With further schemes in the pipeline we are looking to grow our partnership with Housing Growth Partnership and Development Bank of Wales further in the future by providing much needed homes and affordable housing.”

Claire Sedgwick, Deputy Fund Manager at the Development Bank of Wales, said: “We are very pleased to support Edwards Homes and Housing Growth Partnership with this development, which will help provide much-needed residential homes in Flintshire.

“Our property funds are here to support independent developers in making a big impact in Wales, and can work with them at any stage of development. In the last five years, we’ve invested £212m in the property development sector in Wales, helping to build new homes and commercial premises across Wales.

“It made perfect sense for us to join the Housing Growth Partnership in supporting development on this important project, with investment led by our team based in north Wales and we look forward to its successful completion.”