Target Information

MARK and HUB have successfully acquired a prime site located at 2 Snow Hill Plaza in Birmingham, marking a significant milestone for MARK as it enters the UK build-to-rent (BTR) market. The site, which has been vacant for over a decade, will undergo redevelopment into high-quality rental homes, a public realm, mixed ground-floor commercial space, and amenities for residents. This acquisition reflects a growing trend in the real estate sector towards creating sustainable and community-oriented living spaces.

The partnership between MARK and HUB also symbolizes the beginning of a collaborative effort that aims to drive further developments in the UK BTR landscape. HUB has previously completed BTR projects totaling £784 million, establishing itself as a notable developer within this sector.

Industry Overview in the UK

The UK build-to-rent sector has shown remarkable growth, especially in recent years. In 2021, the industry experienced a record inflow of investments, with a total of £4.1 billion being committed, surpassing the previous year's figures. The surge in BTR investments reflects a broader shift in demand for quality rental housing solutions, particularly in vibrant urban areas.

As cities like Birmingham become increasingly attractive to residents due to their strong economic fundamentals and supportive city governance, the need for quality BTR developments becomes more pronounced. The Birmingham City Council, for instance, is committed to fostering growth and ensuring the provision of adequate housing, making it a desirable location for investments.

Additionally, the BTR model caters to a diverse range of residents—from young professionals to families—by providing premium rental options that incorporate necessary amenities. As a result, various schemes are ongoing in lifestyle cities such as Leeds and Edinburgh, which further underscores the sector's potential for expansion.

With continued interest from both UK and international investors, the BTR market is poised for further growth, driven by ongoing shifts in rental demand and an increasing recognition of its viability as a long-term investment strategy.

Rationale Behind the Deal

The acquisition of 2 Snow Hill Plaza aligns with MARK's strategic objective to diversify its portfolio and increase its residential exposure in the UK market. The partnership with HUB represents a proactive step towards building a robust BTR platform capable of accommodating the rising demand for quality rental housing.

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