St James Securities, developers of the £200m Becketwell regeneration scheme in Derby, have announced that Grainger plc has agreed to forward fund, acquire, and operate the build to rent (BTR) element of the scheme at a cost of £37.375m.
D2N2 LEP has invested £8.1m of Local Growth Fund into the Becketwell scheme which is expected to bring numerous benefits to the area. The repopulation of residents to the city centre is anticipated to boost activity outside of traditional retail hours and it is also hoped that the substantial levels of investment proposed at Becketwell will provide confidence for further new investment in surrounding areas.
The residential development, which is the first purpose-built BTR scheme in Derby, will comprise of 259 one and two-bedroom apartments offering resident amenities, plus two commercial units.
The apartments, which will be built on the site of the former Debenhams store on Victoria Street, will form part of the first phase of the Becketwell scheme and will be adjacent to the new public square, which is the centrepiece of the development and will also be delivered as part of phase one.
The BTR scheme will be a high-quality offer and will feature a rooftop terrace and ground floor amenity space. There will also be a manned reception, gym and separate co-working space, which will serve as an alternative to working from home. Secure car parking, bike store and electric car chargers will also be provided.
Grainger is a market leader in the UK build to rent and private rented sector. This is their first investment in Derby and forms part of their national build-to-rent and PRS investment strategy.
Construction work on the apartments is set to commence shortly, with completion by Spring 2023.
Becketwell future plans
Work is already well underway to bring forward a second phase to comprise a new 3,500 capacity performance and conference venue on the site of Laurie House offices and the former Pink Coconut nightclub.
Future planned phases of the scheme include a range of other complementary uses of the site including up to 25,000 sq. m of new grade A offices and commercial space, a hotel, and a multi-storey car park, with a smaller more intimate courtyard public square.
Sajeeda Rose, CEO of D2N2 Local Enterprise Partnership, said:
“We are pleased to see the progress being made on the site and will continue to support Derby City Council on the scheme to deliver the comprehensive regeneration of the Becketwell area of Derby City, contributing to our region’s economic recovery and growth.”
Commenting on the funding agreement with Grainger plc, Oliver Quarmby, managing director of St James Securities said:
“We are delighted to be working with Grainger on this major BTR scheme which will deliver much needed residential accommodation in Derby city centre. Grainger are a well-established operator in the sector, with an amazing track record of delivery and a tremendous reputation with tenants.
“To have a FTSE 250 investor on-board with the Becketwell scheme is a massive vote of confidence in Derby and will act as a catalyst to drive subsequent phases of development on the wider Becketwell site.”
Councillor Matthew Holmes, deputy leader of Derby City Council, said:
“It’s fantastic to see this important component of the Derby Recovery Plan moving ahead at such a crucial time. This huge investment by Grainger shows the confidence in Derby as a City to build back better.
“The ambitious development at Becketwell will diversify the economy and is a prime example of how we are creating a modern, SMART city, with jobs for the future.
“We are proud of the vital role Derby City Council played in assembling the land and securing the D2N2 LEP investment enabling this collaboration with the private sector.”