Precede Capital Partners and Nomura have provided a £227m four-year whole-loan facility to Downing Living to finance the construction of its First Street build-to-rent scheme in Manchester.
The development consists of 1,790 homes across three buildings. The site is located in Manchester city centre’s thriving First Street regeneration area and is within walking distance of Deansgate and Oxford Road stations.
The development will include air source heat pumps, EV charging points and rooftop solar panels.
Downing Living is implementing a strategy for the asset to be net zero by 2038 depending on the extent of grid decarbonisation and connection to the Civic Quarter Heat Network, meaning it will be compliant with the “net-zero ready” requirements as contained in the Future Homes Standard.
Phase one of the development is expected to complete in August 2024, with phase two scheduled for delivery in March 2025.
George Downing, founder of the Downing group of companies, which owns Downing Living, said: “Our First Street development will complete the long-awaited transformation of a key site at the southern gateway to what is one of Europe’s most exciting and progressive cities.
“First Street itself is part of a wider story of investment and confidence in Manchester, a future-proofed ‘15-minute city’ where we will offer brilliant options to live, work and play on your doorstep.”
David Jerrard, chief credit officer at Precede Capital, said: “We are delighted to have closed this financing for a high-quality asset and to have provided the Downing Living team with the certainty and backing required to deliver an important project that will help meet the sustained demand for co-living schemes in this market.
“We are also particularly pleased to have closed our inaugural deal in the north of England, an important milestone which is testament to our team’s extensive industry relationships and our ability to identify and transact on high-calibre opportunities across the UK.”
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