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Cordia Launches Construction of Its 1st U.K. Rental Housing Development

Residential

Cordia, part of the Futureal group, has started construction work on its first build-to-rent (BTR) project in the UK. The 148-apartment development, called The Lampworks, is being built in Birmingham's historic Jewellery Quarter.

With more than 200 listed buildings, the Quarter is still an important economic center, accounting for 40% of the UK jewelry industry.
 
The residential development will include one-, two-, and three-bedroom homes. These will include rental apartments at 20% below current market rents, in line with local legislation, and modern retail space on the ground floor. The common feature of the apartments is their outstanding energy efficiency, which means that The Lampworks will be one of the most energy-efficient developments in the city. In addition to a landscaped courtyard, future residents will enjoy high-quality community facilities such as a communal lounge, kitchen, and dining area, or a coworking area with meeting rooms.
 
"Although the U.K.'s institutional rental sector has made significant progress over the past decade, it is still in its infancy compared to the Nordic countries or Germany. Dedicated BTR projects currently account for less than a tenth of the total rental housing stock, and in some regions, the proportion is even lower. As the country's existing rental housing stock is obsolete, there is a need for large quantities of new-build rental housing, owned and operated by institutions. We entered the U.K. BTR market recognizing this opportunity," said András Kárpáti, managing director of Cordia U.K.
 
The development is an important part of the company's comprehensive neighborhood regeneration plans for Great Hampton Street. Cordia has recently refurbished the Grade II listed office building (The Bank) where the headquarters of its local subsidiary is located. It is also the site of The Gothic, the company's project to renovate the early 19th-century complex, which will include 50 exclusive apartments in several phases and modern retail space on the ground floor.
 
"The Lampworks is the first development in our U.K. rental portfolio and a unique player in the Birmingham rental market. The development features contemporary architectural design in a setting that preserves and reflects the area's valuable cultural and industrial heritage," said Kárpáti.
 
In the center of Birmingham, purpose-built, modern homes can be rented at an average rent that is almost 13% higher than existing, largely outdated homes. "The energy efficiency of the project's apartments will be above the market average, so tenants will pay lower utility bills, and we hope that this benefit will be reflected in higher rents," he added.
 
The construction of The Lampworks is being managed by Cordia's strategic partner Pedrano Group, which has completed several joint projects in Hungary and abroad.

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