Firm lands £40m loan to complete Manchester apartment blocks development

OakNorth, the Manchester-based bank for entrepreneurs, by entrepreneurs, has completed a £40.2m loan to Select Property Group.

Manchester-based Select, the developer, retailer and operator of four market-leading property investment brands with 4,000 beds under management, will use the capital to develop two residential towers in the city – an 18-storey building consisting of 147 residential units called Exchange Point, and a 16-storey building consisting of 209 residential units called Laurence Place.

The developments will be the first in Select Property’s newest brand – Origin Homes.

In addition to the extensive residential units, the buildings will also provide more than 14,000 sq ft of commercial space.

The site lies in the heart of the Greengate regeneration area in central Manchester, less than a 10-minute walk from both Manchester Victoria and Salford Central stations, as well as Spinningfields, the city’s business district and luxury dining and shopping destination.

Select’s other brands include Vita Student, which consists of 14 student accommodation sites, City Suites, Manchester’s only luxury serviced apartments, and Affinity Living, 500 apartments in Manchester, spread over two developments that are expected to open from the fourth quarter of 2019.

Commenting on the deal, Mark Stott, founder and chief executive of Select Property Group, said: “As the city where we’re headquartered and one where we’ve now completed several large-scale residential projects, Manchester plays a very significant role in our business and our portfolio.

“It is one of Europe’s fastest-growing cities and with the Ordsall Chord and High Speed 2, its popularity will only continue to grow.

“Property now sells three times as quickly here than in London, which means the city is constantly in need of new homes.

“We’re therefore delighted to be bringing this development to the area and are grateful to the team at OakNorth for their support on the transaction.”

He added: “They had a thorough understanding of the market and came back to us on queries within hours. Projects of this scale typically take several months to complete, but they were able to do it in a matter of weeks.”

Eamonn O’Rourke, property finance director at OakNorth, said: “The team at Select Property have successfully completed and sold a diverse range of projects from student accommodation to serviced apartments, totalling over £500m of GDV across the UK.

“Their experience is particularly notable in Manchester where they have an extensive portfolio and a prime position in the market.

“We’re very excited to be completing our largest deal to date with them and look forward to working with them on additional projects in the future.”