The property investor has followed up its October purchase of The Keel in Liverpool with a joint venture agreement for the developer’s 280-apartment scheme in Cornbrook, Manchester, which is currently on site.
Barings Real Estate’s deal makes it a joint venture partner in the acquisition and development of the Cornbrook site, which represents a £57m project. Designed by Sheppard Robson, it comprises two blocks, each with 14 floors of build-to-rent apartments.
Contractor Graham is now on site for Glenbrook, which gained consent in a hybrid application earlier this year that also included outline permission for Peel to deliver a hotel and aparthotel on the adjacent plot.
In October, Barings acquired The Keel on Liverpool’s waterfront from its funder Moorfield for £46.75m. Glenbrook developed The Keel and remains involved in managing the existing building, and also as development partner for a proposed second phase of 260 apartments.
Upon completion, Cornbrook – adjacent to the Metrolink station of the same name – will consist of 280 apartments, including 93 one-bed, 172 two-bed, and 15 three-bed homes. The scheme will include a residents lounge and gardens together with a gym and yoga studio all located on the top floor of the development, with convenience retail at ground floor. Completion is expected in October 2020.
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Barings is also funding the Landmark office development on Oxford Street in Manchester city centre and has provided a £34.7m mortgage loan to fund the development of the Lightbox PRS scheme at MediaCity. The investment in Cornbrook has been made on behalf of a North American institutional investor.
Ian Sherry, director at Glenbrook, said: “Glenbrook are pleased to be continuing our development of BTR accommodation in the region, having almost 1,000 homes under construction in the North West with a similar number due to start on site next year. Barings’ investment requirements for this sector and Glenbrook’s proven ability to identify and execute these transactions was a natural fit and we look forward to developing this partnership further”.
Darren Hutchinson, Barings managing director and head of UK real estate transactions, said: “Cornbrook is an especially attractive opportunity for Barings to continue our relationship with Glenbrook.
“Cornbrook is one of two major commitments to the sector this year and reflects a growing appetite for institutional investors to address the structural imbalances created by decades of under-supply in residential housing, declining average household sizes, and a significant increase in the number of people renting.”