US global real estate firm swoops for Friar Gate Goods Yard homes

A US-based global real estate investor has bought more than 130 properties at Wavensmere Homes’ Friar Gate Goods Yard scheme in Derby.

Kennedy Wilson, which is headquartered in Beverly Hills, California, has bought 131 houses, which are currently being constructed as part of the £75 million mixed-use scheme.

As part of the deal, Wavensmere has also sold 131 homes at one of its developments at Wolverhampton to Kennedy Wilson.

James Dickens, managing director at Wavensmere Homes, said: “We are thrilled to announce this significant deal, bringing institutional capital from a major global investor into regeneration sites that had long been derelict in the centres of Derby and Wolverhampton.

“This transaction enables us to accelerate our construction programme, delivering homes for local people, while supporting local supply chains at Derby’s Friar Gate Goods Yard and Wolverhampton Canalside South.”

Mike Pegler, president of Kennedy Wilson Europe, said: “Wavensmere Homes has garnered a strong reputation for urban regeneration and the delivery of major housing-led schemes within city centre and town locations.

“These homes will offer residents high quality, well-designed and sustainable rental housing in excellent locations within Derby and Wolverhampton.

“We are looking forward to construction progressing as we continue to grow our UK single family housing platform.”

The 11.5-acre Friar Gate Goods Yard site – located off the Uttoxeter New Road in Derby city centre – is bringing about the reanimation of two landmark Grade II listed buildings into over 110,000 sq ft of commercial space, alongside the construction of 276 new build homes.

Extensive new areas of open space, including play areas and pocket parks are also being installed to help enhance the biodiversity of the site, which became derelict in 1972.

The off-plan transaction of 131 homes at the site to Kennedy Wilson was brokered by ACRE Capital Real Estate’s Operational Living team.

Mark Wilson, partner at ACRE Capital Real Estate, said: “This UK residential portfolio offers prime city centre addresses and exemplary ESG credentials, which is reflective of Wavensmere’s high quality developments.

“These two well-amenitised Midlands locations have the added benefit of the range of on-site communal facilities Wavensmere delivers for residents, such as co-working offices, screening rooms, community gardens, and fitness and play spaces.”

Wavensmere Homes has 3,500 homes on site, in pre-construction, or planning.

The firm is in the final phase the £175 million Nightingale Quarter, which is the redevelopment of the former Derbyshire Royal Infirmary into 925 energy-efficient houses, apartments, and community amenities.

It has also secured planning permission for Cathedral One – a new apartments scheme in Full Street.

James said: “We continue to see huge demand for eco-focused single-family housing that’s close to major centres of employment, retail and leisure, with extensive healthcare, public transport and education provision.”