Dandara is to receive a £45m loan from the new £3bn Home Building Fund to deliver more than 2,000 rental units across three sites in Salford, Leeds and Birmingham.
Chapel Wharf will contain 995 apartments on a four-acre site next to the Lowry hotel in Salford. Planning permission was granted in February 2015 for a design by Axis Mason. The developer said it has secured further development finance from HSBC.
Founder and chairman of the Dandara Group Dan Tynan said: “Dandara has already built more than 2,500 properties of this type in the last 10 years in the UK…We are now in a position to actively work with institutions, and independently, to make a sizeable contribution to this market.”
Construction work on all three projects is due to start in January 2017 and is expected to be completed by December 2019. Dandara is working with main contractors Galliford Try, Interserve, and Sir Robert McAlpine. The developer was advised on the funding by lawyers Addleshaw Goddard, property advisers Knight Frank, and Greyfriars Strategic Financial Advisers. The Chapel Wharf team include PPS Group and CBRE.