A major deal has been struck to forward fund a build-to-rent development, comprising over 100 apartments, in Nottingham’s historic Lace Market.

Cording Real Estate Group, the European real estate investment and asset management firm has pledged £17.3million to the project, which will involve the refurbishment of Grade II-listed buildings and a new build. The project, led by developers Abode Nottingham, will provide 117 studios and apartments for rent and is expected to be completed in early 2021.

Charlie Miller, Director of residential acquisitions at Cording, said: “This is our second PRS project in Nottingham after Saffron Court in Crocus Street, which reflects our enthusiasm for the city in terms of demographics, local economics and affordability”.

Smith Cooper, who’s Nottingham office is situated in the Lace Market, provided specialist tax advice in relation to the forward funding arrangement. Experts from both our Tax and VAT teams provided assistance in relation to issues associated with the transaction, ensuring that the deal was structured in such a way that there were no exposures to VAT costs for either party.

In addition, our specialist VAT team advised on and negotiated the VAT position to optimise working capital requirements on the development which assisted both parties in reaching agreement on the transaction.

Gavin West, Head of VAT and Indirect Taxes at Smith Cooper comments “We provided advice on a range of concepts involved in the deal and are really pleased with the outcome for all parties, particularly considering the complexities involved with such a transaction.”

“The scheme demonstrates investors’ enthusiasm for Nottingham as a thriving place to live and work, and the project will really enrich Nottingham’s Lace Market.”

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