United Kingdom Platform

Bluenose opportunistically participated in two British projects that generated high returns, but is now exiting the U.K. as we focus on our Canadian portfolio. Both of the projects that Bluenose invested in saw outdated buildings reimagined into dynamic living spaces marketed to millennials seeking affordable living outside of London. The construction of a new high-speed train between London and Birmingham motivated Bluenose’s investment into Birmingham, which has seen booming population growth over the last decade.

No. 1 Hagley Road 

Bluenose identified SevenCapital as an undercapitalized developer with an impressive Birmingham market pipeline. In 2013 Bluenose invested in the construction of No. 1 Hagley Road, SevenCapital’s first development, which saw the conversion of an office into a 20-storey apartment building. The project was extremely well located: less than 500 meters from Five Ways stations and just a 10-minute walk from New Street Station and the Colmore Business District. In 2016, Bluenose exited the project with a 35% IRR and invested the profits into a second SevenCapital development (see below). 

Fabrick Square

In 2016 Bluenose invested in SevenCapital’s conversion of a factory located in Digbeth, a gentrifying neighbourhood in Birmingham known for its creative vibe. Fabrick Square is comprised of four buildings: The original building, a curtain factory built in 1900, which was preserved and updated, and three new apartment buildings that architecturally echo the original. The 313-unit development was completed in Q3-2017.  Bluenose’s exit strategy was hampered by Brexit, which impacted the velocity of sales. Despite this, a return averaging an excess of 25% was achieved.