X1 bags funding for first Michigan Towers phase

The residential developer has secured a £69m development loan from London Wall Lending to enable a 34-storey tower, the initial part of its 1,314-home Salford Quays project.

The 36-month loan facility will support the ground-up construction of a 34-storey tower comprising 394 apartments. The property, which will be built by Vermont Construction, is expected to be ready for occupation in October 2026.

Once complete, the property – which has already been acquired by asset management group Starlight Investments – will form a part of X1 Developments’ wider masterplan for Salford Quays.

This will see the delivery of three further towers over the next seven years, including an as-yet-unnamed 46-storey building that would be the tallest in the former docklands area.

Michigan Towers is a key feature of Salford City Council’s updated regeneration framework for MediaCity, which outlines plans for the delivery of 3,000 homes and 800,000 sq ft of commercial space.

The move represents London Wall’s latest investment in the area, following its successful funding of Bricks Group’s 457-bedroom Discovery Quay development off King William Street.

The deal was brokered by Charles Louis Mortgage Advisors and valued by Knight Frank, with Burges Salmon providing finding-side legal support.

Ned El-Imad, partner at London Wall, said: “Salford’s regeneration over recent decades has been well-charted, characterised by patient investment in forward-thinking schemes that have brought new life to the Quays and the surrounding area.

“With Media City UK continuing to cement itself as one of the region’s most desirable postcodes, it’s important that the development pipeline can match growing demand. X1 has a strong track record in delivering high-quality, aspirational residential developments, and we have no doubt that its Michigan scheme will be a welcome and necessary addition to the area’s skyline.”

Nick Sweeney, chief executive at X1 Developments – a prolific operator across Salford, Trafford, Manchester, and Liverpool – said: “Manchester and Salford have both acted as a blueprint for city centre living in the UK, with demand continuing to soar for residential development as the region continues to go from strength to strength.

“Our plans for Media City have been long in the making, and with the backing of London Wall we look forward to progressing our vision for the area in the years to come.”

London Wall Lending is an alternative lender, specialising in development loans across the real estate sector. Part of the London Wall Group, the firm is backed by multiple UHNW individuals, syndication partners and institutional investors, and has provided more than £650m in funding to date. The business recently launched a listed £300m bond in a move to expand its investor base.

Michigan Towers will sit off Michigan Avenue, close to the Broadway Metrolink.