GMPF pumps £31m into BTR

Greater Manchester Pension Fund has provided a loan of £31.3m to developer Placefirst for two build-to-rent schemes in Bolton and Halifax town centres. The Bolton project has received £22.6m for the delivery of 167 one- and two-bedroom flats. Previously a brownfield site, the 2.7-acre plot will also offer around 5,000 sq ft of commercial space on the ground floor, communal green areas and a new public square. The remainder of the loan, some £8.7m, will help transform a former multi-storey car park in Halifax into 122 one- and two-bedroom rental flats. Gerald Cooney, chair of the GMPF, said: “As a leader of a council as well as a chair of a pension fund, I know the depth of the housing crisis in which we find ourselves as a nation. We see it as we place record numbers of homeless children in temporary accommodation; as we grapple with waiting lists for social housing getting longer and longer; and younger residents are priced out of home ownership.  “That is why we are proud to make this investment with Placefirst and support the government’s plan to provide much needed affordable homes for hardworking families while delivering strong low-risk returns to pay the pensions of our hardworking members.” Will Church, executive director at CBRE, which advised on the deal, said: “This is the second loan we have made on behalf of GMPF since securing our mandate and the first housing-led loan. This loan will contribute to the essential housing needed in the region, while adding real socio-economic benefits to Bolton and Halifax town centres. We remain interested in supporting further development across all main asset classes with loans that have appropriate risk adjusted characteristics and, crucially, which bring regeneration to the region.” David Mawson, chief executive at Placefirst, said the loan was a testament to the social and economic benefits its developments have been proven to deliver for local communities. Both schemes are under construction, with each expected to reach practical completion in 2025. Once complete, Placefirst will remain on site and be responsible for managing the assets.