Cheyne Capital and North West housing developer Mulbury have agreed a £32m forward funding deal for 144 flats in Manchester’s New Cross neighbourhood.
The investment comes from Cheyne’s second Impact Real Estate Fund and includes a social covenant to ensure that 35% of the homes will be allocated to local key workers, such as nurses, teachers and emergency services workers, at discounted rents.
The 12-storey development, to be built on Oldham Road, will include one, two and three-bedroom flats and will also comprise work, entertainment and relaxation spaces, ground-floor retail facilities, and a 3,000 sq ft roof terrace.
Stuart Fiertz, Cheyne Capital’s co-founder and head of responsible investment, said: “As cities expand, it is too often the case that key workers get priced out of the central housing market and forced to either downsize or move to less accessible areas. We are therefore committed to delivering high-quality homes in desirable locations – and to ensuring that they remain affordable now and into the future.”
The 0.3-acre development site sits within the New Cross Neighbourhood Development Framework, a gateway into Manchester City Centre from the north. It is bounded by Oldham Road, Addington Street, Marshall Street and Chadderton Street, and is currently occupied by outdated industrial buildings and a small surface-level car park.
Mulbury hopes to start demolition and remediation work on the site in February, with completion scheduled for summer 2023.
CBRE advised Mulbury.
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