The investment will fund the construction of the scheme at Raleigh Street, Walsall, consisting of 66 family homes.
Gatehouse UK Private Rented Fund I, which is advised by Gatehouse Bank and in which the bank is a co-investor, has agreed to forward fund a £10.2m Build to Rent scheme in the West Midlands.
The investment will fund the construction of the scheme at Raleigh Street, Walsall, consisting of 66 family homes.
It is being built by Vistry Partnerships, while Colliers International acted as property adviser, and Dentons as legal adviser on the transaction.
This scheme will form part of the second Build to Rent Fund advised by Gatehouse Bank which, since its establishment in December 2015, has spent approximately £90m on the construction of 684 single family houses across the UK.
Following the completion of Raleigh Street, the fund will comprise a 750 unit single family housing private rented sector (PRS) portfolio.
The portfolio is being professionally managed through Build to Rent platform Ascend Properties.
Paul Stockwell, chief commercial officer at Gatehouse Bank, said: “Gatehouse has a proven track record of delivering much-needed homes around the UK by successfully investing in and managing Build to Rent schemes.
"This is another example of our intention to fund developments in the single-family housing sector, providing attractive, affordable and professionally managed homes.
“The Raleigh Street site has remained dormant for eight years so this is a fantastic regeneration opportunity that will provide a significant number of family homes.
“It’s been a great first deal with Vistry Partnerships and we look forward to developing our relationship with them.”
James Warrington, divisional managing director at Vistry Partnerships, said: “This is a large mixed tenure development opportunity for us in Walsall with great links to major nearby cities.
"It represents a significant contribution to the new-build local housing market in the area and we’re delighted to be able to work with Gatehouse Bank on it.”
Edward Marsden, senior surveyor in Colliers International’s build to rent team, said: “This is an exciting first deal between Gatehouse and Vistry Partnerships, which will provide much needed, high quality rental accommodation less than a mile away from the town centre of Walsall.
"This union of investor and developer will be a winning combination for this location and hopefully in many more.”
