Bank of London & The Middle East has extended its first facility for Greater Manchester to the residential developer to fund projects in Castlefield, the Gay Village and near MediaCityUK.
The lender’s initial arrangement will fund the construction of 80 units at its Piccadilly Warehouse development in Bloom Street, along with 18 units on Duke Street and a further 25 apartments at the redevelopment of Brookland House, with a combined GDV of £38m.
Beech Holdings said this is the first time the bank has dealt with a Manchester developer and that the deal demonstrates interest and excitement in Manchester’s real estate market.
Chief executive Stephen Beech said: “I’m especially pleased about this relationship with BLME, it has become possible with the support of our investment partners, AIMS Investments, that has opened doors to institutions who may have never considered projects in Manchester.”
Piccadilly Warehouse comprises a pair of Victorian warehouses on Bloom Street and Minshull Street, which will be converted to 80 one- and two-bedroom apartments.
The project, which also includes the restoration of an adjoining cobbled street that will be used as a courtyard for the development, started on site in May. Completion is expected in September 2022.
Paul Butler Associates advised on planning issues, with Beech Design & Build responsible for all construction.
Sam Dickinson, associate director at BLME, said: “The Manchester residential real estate market is very exciting right now. Beech Holdings has demonstrated that with exceptional quality, design and build for projects, they can generate attractive yields and substantial capital appreciation for investors. Manchester can clearly compete with London.”
Beech added: “I strongly believe that regional cities are able to regenerate and grow the accommodation supply required to begin the levelling up agenda that is needed. But, I am steadfast in my belief that this funding needs to come from new sources, international investors and banks like BLME – ones that are open to new opportunities and future growth and are not blinded by London’s real estate market.”