£27.6m deal for 135 homes in Northern Quarter
M&G Real Estate, one of the UK’s largest property investors, is to finance the £27.6m development of 135 new private rental homes in the Northern Quarter of Manchester – marking its first entry into private rented sector in the North of England.
The deal was made on behalf of M&G Real Estate’s UK residential property strategy, launched in mid-2013 for UK and international investors, led by head of residential investment, Alex Greaves.
Developed by Mulbury and designed by Tim Groom Architects, the scheme at 97-105 Port Street is anticipated to be ready for occupation by summer 2018. The homes are mainly one and two bedroom apartments.
The development will also include extensive communal roof top gardens and balconies for all apartments, a reception and 6,000sq ft of commercial office space at ground level, all within a ten minute walk of Manchester Piccadilly Station and Manchester Arndale shopping centre.
Greaves said: “This investment marks our entry into the strong regional market in the North West, further extending our significant engagement in the UK private rented sector, which includes partnerships and deals with housebuilders Crest Nicholson and Telford Homes.
“This takes M&G’s residential property commitments to around £545 million of committed capital on behalf of UK and international investors, including pension funds, insurance companies and local authorities.
“We are confident that the build to rent sector offers long-term growth potential with considerable diversification benefits for investors.”
James Alderson, head of Mulbury City, the division which specialises in city centre build to rent projects, added: “We are thrilled to have secured the backing of such a well-established and prestigious investment house as M&G for this particular scheme. It was clear as soon as we began talking that they had the appetite and expertise to make this project a real success.”
Mulbury was advised on its deal with M&G by the Manchester-based real estate team at law firm Fieldfisher, led by James Flynn. Legal advice on the land purchase was provided by the real estate team at Primas Law, led by Simon Baxter.
