Vita on site at First Street
BUILDERS are on site at a £25m upmarket student scheme in the First Street development area of Manchester.
Vita, which is also converting three buildings into 350 rooms in Liverpool, is building 279 luxury serviced apartments and a 1,800 sq ft commercial unit on the ground floor. Around 80% of the scheme, designed by 5plus Architects, has been pre-sold.
The First Street site already has approval for a £20m cinema and theatre building, an 11-storey 208-bed Melia hotel, a 10-storey car park and 30,000 sq ft of restaurants, bars, and shops.
Vita was set up by Mark Stott, founder of the Dubai-focused property investment business Select Property based in Wilmslow, and Chris Oakes of Alderley Edge-based upmarket developer Huntsmere. It has been backed by the founders and angel investors such as Angus Monro, chairman of The Hut Group and former Matalan chief executive.
Select director Giles Beswick said: “As a North West-based investment property company it’s great to see the strength of the local buy-to-let market. With new opportunities like student accommodation emerging, and the North West having the biggest student population in Europe, the buy-to-let trend in the region is one that is sure to continue.
“Work on our 279 unit bespoke student development at First Street in Manchester has just begun with more than 80% of the studios sold to investors in the UK and overseas. It is due to be completed ready for the 2014/2015 academic year.”
According to a report by Select, buy-to-let investments have been boosted by tighter mortgage lending which has made it harder for first time buyers who are continuing to rent. Figures from the Council of Mortgage Lenders show the amount of money borrowed by buy-to-let landlords in Q1 2013 has increased by 12.9% to £4.2bn since Q1 2012.
Select said figures from LSL Property Services show the average rental yield in the UK for April 2013 was 5.3%. The North West was identified as the most successful buy-to-let market, with yields up 0.4% since 2012 and rents up 1.4% in the same period to £568 per month.
