The acquisition marks Eutopia Homes’ third purchase from Network Rail, following previous transactions for Exmouth Junction in Exeter.
The deal was funded by Chenavari Investment Managers, Eutopia Homes’ fifth unconditional transaction with the company.
The brownfield developer has secured a draft allocation in the latest Gloucester Local plan review for a minimum of 300 homes on the site.
It is also planning on bringing forward proposals early next year for the delivery of a mixture of single-family homes for rent, alongside city centre apartments.
“We are excited to bring forward this complicated brownfield site for a new balanced community of homes for sale and rent,” said Scott Hammond, founder and CEO of Eutopia Homes.
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“Recent investment by the University of Gloucester for the acquisition of the old Debenhams store for a new campus, along with the City Council's recent investment in driving a new cyber hub for the UK in close proximity to Gloucester Council’s HQ, will bring more employment to the City which, in turn, will drive up the demand for high-quality housing.”
Cristian Postans, managing director at Chenavari Investment Managers, added that the company was delighted to be supporting Eutopia Homes on the Gloucester deal.
“The UK multifamily sector is a key area of focus for Chenavari and, together with best-in-class investment partners like Eutopia Homes, we continue to back deals with strong underlying fundamentals in locations with favourable supply-and-demand dynamics such as Gloucester."
The developers’ scheme has been designed to cater to the city’s growing workforce by providing housing for both rent and sale that is well designed, high quality and accessibly priced.
Since Eutopia Homes was launched in 2017, it has secured a £365m pipeline of mid-market homes for rent and sale in core regional cities.
Pictured: Architect’s drawing of the Gloucester regeneration scheme, by Darling Associates