Europa completes acquisition of £37m Manchester BTR scheme 

The real estate investor has bought Mulbury’s 161-home development on Bendix Street in the city’s New Cross district. 

Europa Capital has entered into a forward funding agreement for the 12-storey Manchester scheme as it looks to build its build-to-rent portfolio. 

“Against the backdrop of a significant shortage of housing in the UK, the build-to-rent sector has proven its resilience during the pandemic, as well as from wider structural change,” said Jason Oram, partner, fund manager at Europa Capital.

“During times of high inflation, the asset class has historically been a very good hedge and for these reasons institutional investors are increasing their capital allocations to the sector.” 

Europa made the acquisition on behalf of its latest value add fund, Europa Fund VI. The value of the investment was not disclosed.

The 138,000 sq ft development will feature a mix of one-, two- and three-bedroom apartments as well as a 1,700 sq ft of commercial space. 

GMI Construction has begun work on the Bendix Street project, which has a GDV of £37m and is due to complete by the end of 2023.  

This is the second residential scheme to be delivered by Europa Capital in Manchester since the successful launch of Renaker’s Anaconda Cut, a 44-storey tower that is currently the tallest building in Salford. 

In total, Europa Capital has invested around £1bn in residential schemes across Europa over the last decade.     

Martin Bury, co-founder and director at Mulbury, added: “This deal marks another significant milestone in the regeneration of New Cross and will contribute hugely to the area’s ongoing transformation into a vibrant and thriving part of the city. 

“We’re thrilled that Europa Capital share our vision for the site and our ambition to provide exciting city living opportunities that help Manchester deliver on its homes strategy.” 

Mulbury won approval for the Bendix Street project last December. The development, designed by Tim Groom Architects, is one of three schemes the developer is bringing forward in Manchester’s New Cross neighbourhood. 

Earlier this year, investor Cheyne Capital Real Estate agreed to forward fund another of Mulbury’s New Cross schemes, a £32m 144-apartment development on Oldham Road. 

The developer’s third New Cross venture is the 73-apartment Peeler’s Yard on Goulden Street.