Barings has bought Moorfield’s build-to-rent scheme, The Trilogy, for £53.5m.
The stabilised operational scheme comprises 232 flats in Castlefield, close to Manchester city centre. The scheme was developed by Moorfield and Glenbrook. It opened in April 2019 and is managed by Allsop.
Barings bought the property from Moorfield Real Estate Fund III, in an off-market transaction.
The investor intends to spend around €350m (£300m) this year on residential property.
At the start of the year, Barings agreed a £43.8m forward funding deal for two student schemes in London and Manchester from developer Alumno. The latest buy brings the living portfolio to 1,130 BTR flats, with a further 267 PBSA rooms.
Darren Hutchinson, head of UK real estate transactions at Barings, said: “This acquisition was a unique opportunity to enter the attractive Manchester BTR market through a proven operational asset.
“Manchester is a market we know well, having previously invested in PBSA and prime office space in the city, and we are confident that the list of major occupiers choosing Manchester as their regional hub will only continue to grow in the months and years ahead, further underpinning the attractiveness of the city for young talent from its universities and thereby creating a deep pool of demand for rental accommodation.”
The sale from Moorfield follows recent disposal of another operational asset from MREF III, with The Forge in Newcastle recently going to Grainger. Moorfield has one other BTR scheme in its portfolio, with the 270-bed Duet, also in Manchester.
Ross Netherway, head of origination at Moorfield Group, added: “Investment in BTR remains a key limb in our wider beds investment strategy, which also includes student, healthcare and senior living.”
Barings was advised by CMS. Moorfield Group was advised by Knight Frank and Shoosmiths.
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