US property group acquires 50-storey Salford residential tower

US property group Cortland, backed by New York City funding partner Madison International Realty, has agreed a deal to buy a 50-storey build-to-rent property currently under construction in Salford, from Manchester-based Renaker.

The deal is for an undisclosed sum.

Contracts were exchange on December 1, for the tower, which is part of the Greengate Colliers Yard masterplan.

Cortland at Colliers Yard will offer 559 one- and two-bedroom apartments with more than 25,000 sq ft of amenity space, is already at level 23, and is expected to complete early in 2024.

The glass clad tower has a three-storey brick podium level which will create a neighbourhood at street level and will include shops, restaurants, and bars. The scheme will also include the creation of a public park for the benefit of the wider neighbourhood.

Daren Whitaker, Renaker managing director, said: “Following a smooth and easy transaction with Cortland, we are excited to welcome them to Colliers Yard and the developing Greengate community of Salford.

“This is an important and exciting further step in the regeneration of the wider Greengate masterplan to deliver an aspirational and new neighborhood to Salford and Manchester city centre. We can’t wait to see Cortland at Colliers Yard come to life.”

Alex Lukesch, managing director at Madison International Realty, said: “We believe the UK residential rental market is supported by several strong tailwinds including a significant supply/demand imbalance and rising house prices.

“While there has been substantial investment in London, we think there are exciting opportunities across the country’s major cities where the same supportive dynamics are at play, which are also seeing strong investment activity.

“We look forward to working with Cortland to bring forward this high quality build-to-rent venture in Manchester as we work together to expand their platform.”

Owain Thomas, senior director Europe at Cortland, said: ““We are thrilled to be entering Manchester market with Cortland at Colliers Yard.

“We look forward to working with Renaker to realise a truly exceptional BTR asset in a key location, offering unmatched customer service and an unparalleled level of private amenity for our residents.

“This is a great example of Cortland working with our partners to deliver our vision of bringing Cortland’s resident-first rental living experience to the UK.”

Cortland is a multifamily real estate investment, development, and management company.

With this deal it has closed on almost 1,000 units in the fourth quarter of 2021 alone and is looking forward to an even more robust 2022.

It has an attractive pipeline of BTR projects across the UK that is focused on high quality assets with market leading service, outstanding amenities, and high end interiors. Along with Harrison Street, Cortland recently announced the development of Cortland Broad Street, a 440-unit build-to-rent property in Birmingham following its maiden investment in the UK, the 367-unit BTR community in Watford, Cortland Cassiobury.

Cortland has an international development office in London and a property management office in Leeds. In September, Cortland announced the acquisition of Qdime Group, a UK-based residential property management service business with more than 30,000 units under management. The investment confirms Cortland in the top 10 largest block management providers in the UK.

For Renaker this deal follows several others across its large portfolio.

Supported by The Greater Manchester Housing Fund and the Manchester Pension Fund, Renaker is progressing at pace the delivery of multiple developments, including schemes for open market sale across three exciting new Manchester city centre neighborhoods – Colliers Yard Greengate, Great Jackson Street, and Trinity Islands Manchester.

In December last year, the GM Housing Investment Loans Fund announced it would lend £37.6m to support the development of Colliers Yard in Greengate, Salford.