"The James’ established track record of delivering high-quality schemes across several UK cities made them a natural partner as we look to grow our exposure to the sector. We look forward to working with them again as they build out their portfolio further"
- Ian Burdett - Investec
Investec Bank plc has announced that its Real Estate team has provided UK rental accommodation provider, The James with a £17m loan to fund the development of a 150-unit co-living scheme in Birmingham city centre.
The deal furthers Investec’s exposure to a sector that is benefitting from a number of compelling tailwinds, including a growing shortage of high-quality rental homes and ongoing homeownership affordability challenges.
The development will see the transformation of Richmond House, a 67,000 sq ft former university building, into The James Birmingham, the city’s first co-living scheme, designed to meet the need for high-quality rental units from postgraduate students and young professionals working in the area.
The development will include a two-storey rooftop extension and the provision of shared facilities including a communal kitchen and dining areas, podcast studio and work lounge, gym, games room, cinema, external terrace and socialising area. Other features include air-source heat pumps throughout the building and 166 bike parking spaces.
Founded in 2018, The James currently has 302 apartments in operation across three fully occupied assets in Liverpool, Manchester and Sheffield. A further 406 are in development, including The James Birmingham as well as a future scheme in Manchester.
Knight Frank’s 2024 UK co-living report revealed that since 2020 investors have deployed nearly £1bn in funding or acquiring co-living developments, and further acceleration in the growth of the sector is anticipated. Manchester, Liverpool, Sheffield and Birmingham are the most established regional markets as a result of their large and growing populations of young professionals, strong graduate retention rates and expanding employment markets, which make them viable locations for developers and investors.
“The appeal of co-living is rapidly expanding across the UK," explained Ian Burdett at Investec, "Having initially gained traction in London, the sector is now increasingly reaching other major regional cities, where housing supply and the ability to get on the housing ladder is a challenge for many. Students and young professionals are also increasingly drawn to the sector’s vibrant amenity and community offering,"
“The James’ established track record of delivering high-quality schemes across several UK cities made them a natural partner as we look to grow our exposure to the sector. We look forward to working with them again as they build out their portfolio further.”
Grant Sulkin, Co-Founder at The James added, “We are thrilled to be bringing our product to Birmingham and to be working with Investec on this exciting development. The city’s strong demand for high-quality rental housing aligns perfectly with our vision to create vibrant, well-connected communities for young professionals and postgraduate students. We look forward to delivering an exceptional living experience at The James Birmingham.”
