Trafford Council invests in rental property scheme … in neighbouring Manchester
Trafford Council has lent £22.55 million to developer One Heritage Group to fund a residential property scheme in Manchester city centre.
The scheme for 129 flats has a gross development value of £40 million and completion is expected in 2025.
Agents from CBRE’s lending team advised Trafford Council on the investment. Torsion Group is the contractor on the ten storey tower scheme next to Victoria station and is currently underway with the development.
Andrew Antoniades, Head of Lending in CBRE’s Capital Advisors team, said: “Trafford Council’s funding of this scheme is a crucial investment in Manchester, which is tipped to experience strong population growth in the next decade and has the largest proportion of households in the private rented sector, outside of London.”
“The development’s proximity to the cultural and retail hub of Manchester, the quality of the specification and its strong ESG credentials will be well-received by the market and we’re really pleased to have arranged the funding for the development, on behalf of Trafford, which will provide much-needed housing as well as a promising return on investment at a conservative leverage, in line with the Trafford investment strategy.”
Trafford has also invested £19m in Salboy’s Castle Irwell scheme in Salford, and £27m from its Asset Investment Fund into Kinrise’s makeover of Sunlight House in Manchester city centre.
Asked why Trafford Council aren’t investing in sites in their own borough, rather than seeing commercial opportunities in Manchester city centre, their advisors CBRE said: “It’s a no comment on this one.”
Cllr Liz Patel, Trafford Council’s Executive Member for Economy and Regeneration, said: “This scheme is an important investment opportunity for us, supporting regeneration in Greater Manchester and providing an investment return for Trafford Council. These returns will go on to support services and regeneration activity within the Borough. We look forward to seeing the scheme progress.”
Jason Upton, CEO of One Heritage Group Plc, said: “One Victoria is a significant regeneration project in the heart of Manchester and we are pleased to be involved as Development Manager. Our recently strengthened team looks forward to managing the successful delivery of this significant city centre project.”
Earlier this month, TheBusinessDesk.com reported that One Heritage has been hit by delays on two schemes in Stockport and withdrew from a scheme in Leicester.
In June the stock market listed development manager also refinanced its Oscar House scheme on Chester Road in Manchester after the original funder pulled out.
On this deal Freeths LLP acted on the legal due diligence for Trafford while Dalbergia LLP is retained to monitor the scheme on their behalf.
