UK: Barings and Glenbrook have agreed £152 million forward funding deal for Kirkstall Road BTR and BTS Scheme in Leeds.
Barings, a diversified real estate investment manager, has signed a £152 million forward funding deal with developer Glenbrook for a mixed BTR and Build to Sell (BTS) scheme near Leeds city centre, on the banks of the River Aire.
Glenbrook acquired the site in 2023 on behalf of a US insurance company and secured planning approval for the scheme in February of that year.
The company will retain a stake in the development through a joint venture with Barings and will oversee its delivery.
Designed by architecture and interior design firm Carey Jones Chapman Tolcher (CJCT), the Kirkstall Road scheme will provide 618 homes, comprising a mix of one-, two-, and three-bedroom apartments across five buildings.
The project incorporates air source heat pumps in all apartments and photovoltaic (PV) panels to help meet a portion of the buildings’ electrical demand.
The five-acre site offers over 10,000 sq ft of amenity space, including a residents’ lounge, co-working areas, a gym, two private roof terraces, and 3,800 sq ft of commercial space.
The Kirkstall Road scheme aims to achieve HQM 4* and EPC B ratings, aligning with the LETI 2020 target for upfront embodied carbon and contributing to a significant reduction in operational carbon emissions.
Located one mile from Leeds city centre and just over half a mile from Wellington Place, an emerging office quarter and commercial hub, the site also sits within a mile of Leeds Central railway station, the University of Leeds, and Leeds Beckett University.
This marks the fourth BTR project that Barings and Glenbrook have collaborated on, following the forward funding of the Vox scheme and the acquisitions of The Trilogy in Manchester and The Keel in Liverpool, all of which are managed by Allsop Letting and Management (ALM), who will also oversee the Kirkstall Road development.
Construction is already underway, with completion expected by the end of 2027.
Ian Sherry, co-founder of Glenbrook, said: “We are thrilled to be partnering again with Barings Real Estate on this impactful project. This development not only addresses the urgent need for housing in Leeds but also contributes to the revitalisation of the Kirkstall Road area.We believe that creating high-quality living spaces is essential for fostering thriving communities.”
Gunther Deutsch, managing director of Barings Real Estate, said: “Barings has significantly expanded its living sector exposure over the past three years, making it our second-largest European real estate sector after logistics. This is particularly true in key jurisdictions such as the UK, the Nordics, the Netherlands, Germany, Italy, France, and Spain.”
Ben Pile, head of European residential investment and asset management at Barings Real Estate, commented: “Leeds represents a significant opportunity for growth in institutionally developed and managed residential property. As the UK’s fourth-largest city, it has a vibrant population of young professionals, and we are actively seeking further opportunities to deploy capital on behalf of our partners.”
