Barings acquires Manchester PBSA for £65m
A forward funding deal has been struck for McLaren Property’s 319-bedroom St Gabriel’s Hall development in Rusholme.
Barings will fund the Oxford Place student scheme to the tune of £65m. The development is Barings’ second PBSA investment in Manchester after a £44m deal for Alumno’s Cambridge Road scheme in 2021.
Ben Pile, head of European residential investment and asset management at Barings, said: “Given the continuing supply-demand imbalance for purpose-built student accommodation in Manchester, St Gabriel’s Hall will provide an attractive proposition to students.
“We are delighted to be partnering with McLaren Property, who are a well-regarded developer in the PBSA market.”
The 104,000 sq ft scheme was approved by Manchester City Council last year and comprises two new-build blocks and the refurbishment of two heritage buildings.
The main phase of work is expected to begin this November. Completion is expected in summer 2025, enabling the first residents to move in in time for the start of the 2025/26 academic year.
The development is located south of the University of Manchester and the Royal Infirmary in an established area student area.
David Atherton, divisional managing director at McLaren Property, said: “This partnership is a milestone moment for the project and secures the development finance required to bring this exciting scheme to fruition.
“McLaren Property and Barings have a shared vision to breathe new life into these redundant historic buildings and help set the highest standards of accommodation within Manchester. With enabling works already underway and the main works set to commence in November, McLaren’s focus is now on delivering an award-winning redevelopment.”
Cushman & Wakefield advised Barings while CBRE acted on behalf of McLaren.