LaSalle backs Manchester PRS with £110m purchase
Renaker Build has sold a build-to-rent residential scheme currently under construction on the edge of Salford to LaSalle Investment Management, for around £110m.
The project is located within the Greengate development area, on the border of Salford and Manchester city centre. Designed by OMI Architects, it totals almost 500 apartments within two towers of 21 and 31 storeys.
The first phase, made up of 229 apartments, is now complete and available for private rent through property agents JLL. The second block of 268 units will follow in December 2016.
At the start of 2015 Renaker secured a development loan of £35.1m from the Government’s £1bn build-to-rent fund via the Homes & Communities Agency, to support the build of the Greengate project.
The homes at Greengate range in size from one to three bedrooms with most offering either a balcony or terrace, set in a landscaped communal courtyard. Designed to create a ‘boutique hotel’ feel for residents, the development includes a resident’s lounge, gym and concierge service.
Andrew Stanford, UK residential fund manager, LaSalle Investment Management, said: “Access to large-scale PRS opportunities in strong markets are becoming highly sought after. Renting is the predominant tenure for city living and the depth of the tenant market is one of the reasons that Manchester and Salford rank so highly in our multi-factor PRS model. Given the quality and location of our scheme, we intend to follow our model of creating a strong local brand that will position it as Manchester’s premier PRS scheme. Since July 2015, we have exchanged or completed on over £325m of build-to-rent transactions, which equates to over 1,600 homes.”
Andy Finch, head of sales, Renaker Build, said: “Naturally we are delighted to have concluded the sale, which demonstrates the clear strength of the city centre market, the quality of our product and service, and the commitment to Manchester that major institutional investors are prepared to make.
“Greengate sets new standards of quality for city centre living and will offer a service level and management platform that will ensure that it remains a high-quality and sought after development for many years to come.”
LaSalle was advised by JLL. Arcadis advised LaSalle on technical due diligence and project monitoring.