Downtown developer seals funding deal for nearly £40m

The McGoff Group, the company behind the £35m Manhattan-inspired Downtown apartment scheme in Manchester, has completed a funding deal with development property finance specialist Wellesley Finance worth nearly £40m.

The facility is believed to be the largest ever debt package issued by “alternative” lender Wellesley.  

The total facility is up to £39.9m in total over a four-and-a-half year period that will fund the delivery of the entire project in multiple stages.

Adding to the McGoff Group’s growing facilities of nearly £100m, Downtown is a Manhattan-inspired development on the banks of the River Irwell, on the border of the cities of Manchester and Salford, and will comprise 368 apartments complemented by high end communal facilities.

Founded on PRS principles and evolved in association with the Home Office PRS Task Force, Downtown will offer hotel-style communal facilities including high grade landscaped grounds and roof terraces, 24 hour concierge services, cold and dry post rooms, an on-site gymnasium, business centre and media room.

The project will be built and block managed by the McGoff Group, including its McGoff & Byrne principal contracting division and McGoff Group Facilities Services division, to ensure a truly ‘one stop shop’ approach to delivery and asset management from one of Manchester’s fastest growing entrepreneurial businesses.

Director at McGoff Group, Chris McGoff, said: “Downtown has already been a huge success.  Having achieved sales on well over 200 units, it’s great to be able to see the scheme ready to come to life after more than two years in the planning.  

“Success has not only been founded on the building’s hotel-style services, great riverside location and proximity to local amenities and transport links, but has also been influenced by our purchaser’s confidence in the McGoff Group’s offering and longevity which has had a direct positive impact on sales.”

Derek Bradstock, head of origination at Wellesley, said: “It’s great to conclude this deal with the McGoff Group.  Offering flexible finance for a wide range of different developments, we are committed to supporting ambitious and experienced property developers like Chris and the team and very much look forward to seeing the scheme start to take shape.”

Law firm, Fieldfisher, has also worked on the project from inception to site acquisition.

Partner for engineering, projects and construction, James Flynn, added: “We have been delighted to work with the McGoff Group and advise on planning, financing, agreement of construction documents, site set up and the sale of units in the scheme.  

“This ambitious development will result in an iconic new city landmark and has involved lawyers from our real estate, planning, banking and construction teams across all of our UK offices.”

Construction at Downtown will start later this month, with initial phases of project completions taking place during the first quarter of 2019.