Manchester’s Ropemaker Court sold for £42m

M&G Real Estate-backed BauMont Real Estate Capital and Spinnaker Estates have joined forces to acquire the 416-bed student accommodation property opposite Whitworth Park – with Grosvenor providing a £40m loan to support the acquisition and a subsequent refurbishment.

Built in 2012, Ropemaker Court had been owned by Ropemaker Properties prior to the deal.

As the new owners, BauMont and Spinnaker will commence a phased renovation of the property to improve its amenity offering and energy efficiency. Plans are in place to add solar panels and install smart building technology.

Damien Pasini, investment director at BauMont Real Estate Capital, said: “This investment reflects a continuation of our UK living strategy, focused on assets with strong underlying fundamentals and requiring targeted capital investment.

“Manchester is among the UK’s most attractive PBSA markets, underpinned by scale, a sustained supply-demand imbalance, and the presence of leading academic institutions.”

In a joint statement, Spinnaker Estates founders Andrew Turton and Abhi Agarwalla said: “Our strategy in the UK PBSA sector is built around identifying structurally undersupplied, high-liquidity university markets and repositioning legacy assets into modern, operationally resilient accommodation.

“Ropemaker Court aligns squarely with that approach. We’re pleased to be working alongside CBRE Grosvenor and BauMont to execute a targeted business plan and deliver long-term value through thoughtful asset and operational management.”

The loan from Grosvenor is a five-year facility with a capex trance for refurbishment works. The company was advised by CBRE Lending on the deal.

Regarding the loan, Grosvenor Property UK investment director Steph Ball said that it reflected the company’s “strategy of partnering with high-quality sponsors and funding projects that deliver strong commercial returns, boost housing supply and decarbonise the built environment”.

He added: “By lending from our own balance sheet, we can provide flexible, tailored capital and deliver with the speed and clarity our partners expect.”