Residential investor buys Greater Manchester development for £19m

The development in Holyoake Road, Walkden
X The Business Desk

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Real estate investor The PRS REIT has bought a Greater Manchester residential development for £19m from BlackRock Real Assets.

The 123-home, fully-let development is in Walkden, between Bolton and Salford and is an even mix of two-bedroom apartments, and three-and-four-bedroom houses.

The transaction marks the full commitment of the PRS REIT’s funding resource of £900m.

Steve Smith, chairman of The PRS REIT plc, said: “The acquisition of this new development of purpose-built, high-quality rental homes brings The PRS REIT plc’s portfolio of completed assets to over 3,100 homes and accelerates income delivery.

“The company is now in the final stages of delivering its initial portfolio of approximately 5,200 rental homes, with around 2,000 homes currently in varying stages of development. They are expected to be completed in late 2021.”

The Walkden development generates an annual rent of £1.16m, and increases the estimated rental value of the trust’s existing portfolio to £29.4m. When the homes under development are completed and let, the portfolio would generate £50m a year in rent.

The Walkden development was sourced and completed for Blackrock in June 2019 by Sigma Capital Group’s PRS property platform.

Sigma’s subsidiary, Sigma PRS Management, is the investment adviser to The PRS REIT.