Forshaw, AND Capital form £185m Northern resi fund

The Bolton-based developer has signed a letter of intent with the Canadian equity firm to scale up its delivery of homes and hotel rooms across the North of England.

Forshaw Land & Property Group will be charged with overseeing the sourcing of sites, the development and delivery of projects, and the management afterwards. AND Capital Ventures will oversee the raising of institutional capital, investor relations, and fund formation.

The £185m fund will support residential-led projects of all types including those for the private rented sector and mixed-use projects.

Manchester was cited as part of the draw for AND Capital to create the close-ended £185m fund with Forshaw.

“Manchester is having a moment,” chief executive Teruel Carrasco said.

“This is a city that now behaves like a capital city in its own right, and the capital markets are responding.”

“We’re seeing sustained institutional demand, a regeneration pipeline measured in the billions, and a genuinely deep talent and development ecosystem. That is exactly the kind of moment that draws private equity groups like ours to want to invest here — and to want to invest in great, proven local operators like Forshaw.”

Teruel Carrasco, Lisa Carrasco, Jennifer Sethre, Loren Brink of AND Capital Ventures with Lyndon Forshaw and Lisa Forshaw of Forshaw Land & Property Group celebrated the fund at an event on Wednesday. Credit: Dominic Holden

AND Capital head of capital formation David Chung added: “Forshaw has spent nearly 20 years building the kind of track record that institutional capital wants to underwrite. Pairing that operating discipline with a dedicated institutional capital vehicle gives us a genuine competitive edge in one of the most sought-after regional markets in Europe.”

Lyndon Forshaw, chief executive of Forshaw Land & Property, described the partnership deal as a “transformational moment” for the company.

“We have built a strong track record as an SME developer, but access to funding remains one of the biggest challenges facing businesses in our sector,” he said.

“With AND Capital’s support, we will be able to significantly increase both the scale and number of projects we deliver, while expanding into new asset classes. From growing our hotel portfolio to delivering more family housing and larger high-rise developments, this partnership provides the platform for our next phase of growth.”

Current Forshaw projects include a £64.2m residential tower in Manchester, which is under construction, and Riverside Place, a complex of 814 apartments in Salford that is making its way through planning.