GMPF exits Circle Square resi
Greater Manchester Pension Fund has completed the sale of its 50% interest in th build-to-rent element of the Manchester development to joint venture partner Vita Group.
GMPF was advised by CBRE on the deal, with terms undisclosed.
The transaction, which also encompasses the repayment of GMPF’s mezzanine loan, marks the successful realisation of GMPF’s investment through its Greater Manchester Property Venture Fund, a vehicle established to deliver both financial returns and measurable local economic impact across the city region.
GMPF’s backing for Circle Square relates to the development of 683 BTR apartments and supporting ground floor retail space spread across two buildings, North and East – North building being the 35-storey tower. Feilden Clegg Bradley was the architect for the project. GMPF had no involvement in Vita’s student accommodation at the site. Feilden
Taking up the former BBC estate on Oxford Road, Circle Square occupies a prime site close to the ciy’s universities. Set around the five-acre Symphony Park public space, the district also boasts grade A offices brought forward by Bruntwood SciTech.
GMPVF was set up as a locally-focused investment vehicle that channels pension capital into development opportunities across the North West, and is structured to generate competitive, risk-adjusted returns for GMPF’s beneficiaries while contributing directly to the economic growth and social vitality of the region.
Colin Thomasson, executive director and head of UK investment properties at CBRE, said: “Circle Square is one of the defining real estate stories of the North West over the past decade, and this transaction is a landmark moment in its evolution.
“What has been delivered here is genuinely exceptional: a mixed-use district of real quality and ambition, creating hundreds of new homes and public realm that the whole city can be proud of. GMPF’s decision to back the BTR component of Circle Square through the GMPVF was far-sighted.
“It is a clear example of how patient, locally-committed institutional capital can deliver investment performance and lasting economic benefit at the same time. We are proud to have advised GMPF on this realisation, and Vita Group’s continued stewardship of the scheme gives every confidence that Circle Square will go from strength to strength as Manchester’s pre-eminent residential address.”
Mark Stott, chief executive of Vita Group, said: “Circle Square has always been about more than development. It is a place we have believed in and committed to from the very beginning, and we are thrilled to now hold the asset outright and to have the opportunity to take Circle Square into its next chapter.
“Our partnership with GMPF has been excellent throughout. Their commitment to the scheme and to the broader ambitions of the city-region has been a genuine asset, and we are grateful for everything that has been built together. We look forward to continuing our relationship and exploring opportunities to work together again in the future.”
GMPF is one of the largest local government pension schemes in the UK, managing assets of £35bn on behalf of over 400,000 members across Greater Manchester local authorities.
