Developer KMRE and contractor Hollycroft Construction have started work on-site for a multi-million-pound residential development in popular Kirkstall Road, Leeds.
The high-end scheme of 111 apartments has now been sold to Aberdeen Standard Investments for £17.2m.
Kam Mogul, managing director of Leeds-based KMRE Group, said: “This is popular area in the city and is in walking distance to the business district. KMRE saw a big opportunity and acted quickly to develop the scheme. These are stylish, yet affordable rental apartments which are ideally suited to professionals.
“We are also delighted to have appointed Hollycroft Construction as the contractor for this significant development. Hollycroft has delivered a number of schemes for us and has continued to work on our ever-expanding portfolio of high-end schemes across the UK.
“Kirkstall Road is a rapidly changing part of the city. Considering Kirkstall’s close proximity to Leeds city centre and the wide range of public transport options on offer, this is a popular area of Leeds. Each apartment is designed to be generously sized, to encourage long term tenancies in a great location with a range of amenities.”
The residential scheme – which will complete in spring 2019 -will be made up of superior one, two and three-bedroom rental apartments close to Leeds city centre.
Mogul added: “Considering the likelihood of significant investment in the area due to its convenient location, and high-speed poised to bring further investment, there was an excellent chance for investors to benefit from high levels of capital appreciation and ASI saw that opportunity.”
KMRE Group is a leading developer with schemes throughout Yorkshire and the UK. It is working on a number of schemes in the area including Mabgate Gateway, Leeds which is also on site and offers 92 one, two and three-bedroom apartments across two buildings and is located five minutes from the city centre.
Ed Crockett, fund manager at Aberdeen Standard Investments, said: “This deal reinforces our long-standing commitment to the private rented sector in the UK, where we continue to target high quality stock in key cities.
“The market is currently worth more than £1 trillion and is set to grow with an anticipated 24% increase in private renting by 2022. With its secure long-term rental streams, residential is a compelling opportunity for investors. But product is key. Our experience in Europe, shows that what really counts is being able to create communities that people want to live in for decades. We identified this development by KMRE as a major opportunity.”