L&G to fund £160m Manchester PBSA

McLaren Property’s plans to build the 737-bed Upper Brook Street development have been given a boost after the developer secured the forward-funding deal with the financer.

The PBSA project is part of a wider £450m masterplan for the area, established in 2024.

With £160m secured, work on the delivery of the 273,000 sq ft scheme is expected to begin, with student residents due by September 2028.

Upper Brook Street would comprise two buildings, a nine-storey and a 23-storey block. Its 737 beds would be split between 288 studios and 449 cluster bedrooms.

CBRE acted on behalf of McLaren Property for the deal while MTRE represented L&G.

David Atherton, divisional managing director at McLaren Property, said: “This partnership represents a significant milestone for the project, the wider regeneration of the Upper Brook Street masterplan, and the student accommodation sector as a whole.

“This is a hugely positive outcome and demonstrates the availability of institutional capital for high-quality student-led assets in prime locations.”

He continued: “We are proud to partner with L&G, and we are focused on delivering much-needed student accommodation and continuing to drive investment into Manchester.

“With the associated sci-tech floorspace now also under construction next door, we are fully on track to deliver positive change and help drive economic growth through private investment and without the need for public funds.”

Adam Burney, head of BTR and PBSA at L&G, added: “This partnership reflects the momentum of our expanding PBSA student living platform, launched in 2024, with this project being the fourth asset acquired to date and the first being forward-funded.

“PBSA forms part of our wide housing platform, where we have invested in excess of £5bn across BTR, PBSA, affordable housing, and later living.”

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McLaren had been lobbying Manchester City Council for flexible conditions to allow the letting of up to 35% of rooms outside of term time – this request, which had been holding back the scheme, was subsequently unanimously approved by the local authority.

MCC’s planning director, Dave Roscoe, called the condition restricting the application “unusual” as it is not normally attached to PBSA applications. Concerns centred around the impact on nearby residents.

McLaren’s decision to seek an amendment to the condition was prompted by “discussions with funding partners”, according to a cover letter submitted by AshtonHale.

It added that the restrictions imposed by the condition are “problematic” and could “jeopardise the delivery of the project”.

In October, AshtonHale’s representatives told the city council that a forward funding agreement for the project had been “secured” with a deal inked between the developer and a “tier one financial institution”, now known to be L&G.

Sheppard Robson is the architect behind the 23-storey block, which would be built on the site of the former Citroen garage to the east of the University of Manchester’s Oxford Road campus.

Planner Avison Young and landscape studio Reform have also worked on the application.