Carlyle has provided a £115m loan to Round Hill Capital for a build-to-rent scheme in Manchester.
The loan, from Carlyle’s global credit platform, will fund the construction of Fairfax, a 488-home luxury development. The deal represents the first transaction between the two parties.
The development, which Round Hill acquired via a forward funding agreement in 2022, comprises two towers consisting of one-bed and two-bed flats as well as amenities including a gym, 24-hour concierge, co-working space and roof terrace.
Specialist BTR developer Olympian Homes is the development manager on the scheme, with RG Group serving as the main contractor. Ground works have already been completed.
Taj Sidhu, head of Carlyle European and Asian private credit, said: “This is a unique opportunity to fund a large-scale and landmark residential development alongside a highly established living sector investment manager, in what is a prime area of Manchester.
“Leveraging the resources and experience of Carlyle’s global credit team, the development will deliver the very best of city-centre living, with luxury amenities and contemporary design throughout the apartments and communal spaces.”
Tom France, head of UK Round Hill Capital, added: “Fairfax is our flagship UK build-to-rent scheme, in what is one of our high conviction sectors where we have ambitions to continue scaling our exposure. Carlyle is a blue-chip lender and their support is an endorsement of our vision for the scheme.
“Manchester is one the UK’s most vibrant and dynamic cities which is now firmly established as the UK’s dominant alternative to London. This has underpinned a growing influx of young professionals and students for whom thoughtfully designed rental properties in central locations are highly sought-after. With a limited development pipeline, we anticipate strong demand for what will be one of the city’s premier BTR schemes.”
Image from Olympian Homes
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