The Residential Investment and Birmingham Land teams of global property consultancy Knight Frank have collaborated to broker a landmark Build to Rent (BTR) deal in Birmingham City Centre.

Singaporean global real estate developer City Developments Limited (CDL) has purchased and is developing the site of the record-breaking 49-storey Octagon residential tower – the world’s tallest pure octagonal residential skyscraper.

The team leading Paradise Birmingham, MEPC, which was advised by Knight Frank, will remain as the Development Manager of the building

The scheme, from Argent and Federated Hermes, will deliver 370 one-, two- and three-bedroom apartments flats, including a number of affordable homes, together with communal space, concierge and resident amenities.

Argent secured planning consent earlier this year, as the first residential development on the 17-acre city centre site.

The £110 million project will be 155 metres (509 feet) in height and will be Birmingham’s tallest building when completed in 2025.

Jonny Stevenson, Head of Build to Rent at Knight Frank, said: “Octagon is the tallest and most iconic Build to Rent development Birmingham has ever seen. It reaffirms the city’s status as a best-in-class location for investment and shows the depth of capital looking for opportunities outside of London.”

Mark Evans, Head of Regional Residential Development at Knight Frank, added: “This deal was a truly collaborative effort between Knight Frank’s Birmingham and BTR teams, and we are proud to have broken this landmark transaction. It is the ninth BTR deal the two teams have worked on together – demonstrating the strength of investor interest and depth of renter demand in Birmingham.”

Neil McGinty, UK development director at CDL, commented: “We are delighted to collaborate with MEPC to develop the visionary Octagon residential tower, which will transform Birmingham’s skyline. Since we made our foray into the UK BTR segment in 2019 with the acquisition of The Junction in Leeds, we have been looking for opportunities to grow our portfolio strategically through the development of iconic BTR residential landmarks. Our investment in the Paradise project allows us the unique opportunity to actively participate in the rejuvenation of the Birmingham city region.”

Rob Groves, regional development director with Paradise development manager MEPC, said: “Attracting an investor of the reputation and quality of CDL is a major coup for Paradise and Birmingham. They are a major player globally and have shown great confidence in the city and the region.The award of lead contractor to Midgard for the construction of Octagon is another pivotal moment in the life of this project. It demonstrates our commitment to excellence during the construction phase of the building and beyond. Octagon is a game-changer for the city’s skyline and to now have spades in the ground brings us closer to realising our vision for a unique, world-class building right in the heart of Birmingham.

“From day one, our ambition with Octagon has been simple – to build one of the finest apartment schemes ever seen in the UK. Everything about it – its height, the size of the apartments themselves and their design, the views and the location in the city centre – will be a first and we can’t wait to see the building making progress on Birmingham’s skyline.

‘With further landmark buildings to follow at Paradise, along with the new public realm that will knit Paradise and the wider city centre together, we continue to create a new piece of the city for the people of Birmingham.”

According to Knight Frank’s research, 70% of funds committed in the UK in the first half of 2021 were for schemes outside of London – reflecting investor confidence in the fundamentals which underpin those regional markets, as well as an increase in the number of high-quality development opportunities being brought forward outside of the capital.

Paradise Birmingham has already completed phase one of its development with One Chamberlain Square and Two Chamberlain Square providing some of the best views in Birmingham with stunning vistas across Chamberlain Square itself and of the city’s impressive Classical and Victorian civic architecture.

At almost 2 million square feet, Paradise is delivering up to ten new flagship buildings including Octagon, offering offices, shops, bars, cafés, restaurants and a high-quality hotel across 17 acres in the heart of the city.

The Paradise redevelopment is being brought forward through Paradise Circus Limited Partnership (PCLP), a private-public joint venture with Birmingham City Council. The private sector funding is being managed by the international business of Federated Hermes, which has partnered with Canada Pension Plan Investment Board (CPP Investments) on the first phase of the development. MEPC is the development manager.

Paradise sits in the country’s largest city-centre Enterprise Zone and has already benefited from investment by the Greater Birmingham and Solihull Local Enterprise Partnership (GBSLEP).