Forward-funding BTR deal revealed for Forth Yards

Global investor Hines has agreed to back the development of more than 500 Newcastle homes on behalf of its Hines European Property Partners fund in partnership with Olympian Homes.

Once complete, the 519-home Pottery Lane will form the city’s largest multi-family development, Hines said.

The development sits within the Forth Yards £725m regeneration area, described by Newcastle City Council’s Michelle Percy at MIPIM as having the potential to be the ‘Kings Cross of the North’.

This represents Hines’ first move into Newcastle. The 325,000 sq ft Pottery Lane scheme will be delivered in two phases by development partner Olympian Homes.

As envisaged by the partners, the first 11-storey block, comprising 292 private units, will be completed in Q4 2026, with an additional six-storey, 227-home asset due for delivery in 2027.

Alongside a mix of one and two-bed rental apartments, the scheme will provide around 10,000 sq ft of amenity space including a gym, co-working facilities, two roof terraces and cinema room.

CBRE advised Hines.

Ross Blair, senior managing director and head of Hines UK said: “The rapid growth of Newcastle’s tech and innovation sectors, paired with its rising population and the strong reputation of its higher education institutions, is driving increased demand for high-quality rental accommodation in the city centre, particularly among young professionals.

“The scheme’s strong amenity provision and market-leading ESG credentials align with the post-pandemic priorities of Newcastle’s young professional renters. Its outstanding location adjacent to the waterfront and proximity to some of the city’s most ambitious new development projects will further enhance its appeal to this demographic in the coming years.”

The development will occupy a prime location on the River Tyne, offering waterfront views and direct access to the city’s river path.

In describing its thinking, Hines talked of Pottery Lane’s proximity to The Helix tech and life sciences quarter, as well as the 400,000 sq ft Pilgrim Place development.

Jorge Duarte, senior managing director and fund manager for HEPP, added: “The creation of rental accommodation in areas of high demand and low supply is a high-conviction investment theme for us.

“We believe this ambitious scheme provides a blueprint for how private capital can be deployed to deliver both value for our investors and the high-quality housing supply the UK and Europe so clearly needs.”

Plans are for an all-electric scheme powered by geothermal heat pumps and on-site solar PV making it net-zero enabled from day one.

James Lindridge, development director and chief operating officer for Olympian said: “We are excited to deliver such a high quality BTR asset in partnership with Hines and RG Group. Newcastle is a flourishing city with growing tech business centres, this scheme will help manage the housing supply/demand imbalance in the city by providing high quality, highly sustainable homes to local residents.

“We would like to thank Newcastle City Council for their ongoing commitment and support in the delivery of this scheme and the wider Forth Yards development.”