M&G Real Estate has made its debut investment into the Manchester rental market after agreeing to forward fund a 135 home development on the edge of the Northern Quarter.
It has exchanged contracts with Mulbury to finance the build out of its £27.6m scheme at 197-105 Port Street.
The 14 storey scheme, designed by Tim Groom Architects, was granted planning permission last September. Mulbury has been looking for a developer since then.
The deal was made on behalf of M&G Real Estate’s UK residential property strategy, launched in mid-2013.
The development is the institution’s first foray into Manchester, where LaSalle, Grainger, Patrizia and others have begun carving out a foothold.
Alex Greaves, M&G’s head of UK residential investment, said: “This investment marks our entry into the strong regional market in the North West, further extending our significant engagement in the UK private rented sector, which includes partnerships and deals with housebuilders Crest Nicholson and Telford Homes.”
Over the last two years, M&G has carved out schemes in London, forward funding the development of 152 flats at Victoria Gardens with HUB, and more recently 206 flats at Carmen Street with Telford Homes.
Regionally, it has funded Crest Nicholson schemes for 227 homes in Crawley, south east London, and 97 homes in Bath.
This takes M&G’s residential property commitments to around £545 million of committed capital on behalf of UK and international investors, including pension funds, insurance companies and local authorities.”
Greaves added: “This takes M&G’s residential property commitments to around £545 million of committed capital on behalf of UK and international investors, including pension funds, insurance companies and local authorities.”
See also:
Nov 2015: Mulbury appoints Alderson for city centre push
Sep 2015: Mulbury’s Manchester PRS plans approved
From Feb 2016: Ares to fuel £200m Manchester PRS project
From Feb 2016: Patrizia in Manchester PRS push
alex.peace@estatesgazette.com or @EGAlexPeace or @EstatesGazette
