Merlin Works, Leicester

Merlin Works

The development

The build-to-rent development at the Merlin Works site in the Waterside regeneration area in Leicester comprises more than 380 one and two-bed apartments. Construction will commence on site in November 2018 and is expected to be completed in autumn 2020. The development has been assembled by the developer, CODE, and will be built by Winvic Construction in its second built-to-rent project with Cording.

 

 

The investment

The Cording UK Residential Investment Fund was launched in August 2018 with equity commitments of more than £100 million from German institutional investors. Cording is expecting to raise an additional £150 million of equity commitments from Continental European institutional investors. Using leverage, the fund will have £400 million to create a diversified portfolio of PRS assets, delivering sustainable and stable distributions over a long term holding period.

The business case

Using a unique and comprehensive research approach Cording focuses on the lower-to-mid end of the market and has identified regional cities and locations outside Central London where demand for rented accommodation is strong and set to grow and where supply is predominantly made up of older stock and houses in multiple occupation (HMOs).

Charlie Miller, Director of Residential Acquisitions at Cording, said: “Leicester is a fantastic location for the fund’s first build-to-rent investment. It is a vibrant city which features prominently in the East Midlands with a high demand for affordable new build-to-rent accommodation in line with the fund’s strategy. Leicester’s population is forecast to grow at a rate in excess of the national average, while the current supply of rental stock in Leicester is limited and relatively dated”.