The development is due to complete in 2019 Image by AerialVideoTV

Fortis secures £20.7m loan for Adelphi Wharf

Challenger bank OakNorth has completed an agreement to fund the development of Adelphi Wharf, a 387-apartment scheme to the north of Chapel Street, Salford.

The development comprises 61 studios, 152 one-bedroom flats, 146 two-bedroom flats, and 28 three-bedroom flats, along with two retail units offering a combined 5,920 sq. ft. Adelphi Wharf is pencilled in for completion in December 2019, but has been fully pre-sold.

The deal comes two months after OakNorth agreed a £40.2m deal to fund two Select Property Group residential towers at Greengate.

Fortis was established in 2012 and in the past three years has completed 15 student and residential developments including a total of 1,500 apartments. In all it has completed 24 projects and has eight currently under construction.

Recently Fortis has been busy in Salford in particular, starting on site at the £72m Bridgewater Wharf in October and selling part of its Furness Quay site to Latimer. Work started in August on a 27-storey tower at Fortis Quay

Gareth Morgan, executive director at Fortis, said: “We have now completed several large-scale residential projects in Manchester with several more currently under construction, so it’s a city we know well and one that is in desperate need of more homes.

“We’re grateful to the team at OakNorth for their support on the transaction – they had a thorough understanding of the market, no doubt because they’ve now funded several developments in Manchester and worked tirelessly to ensure the deal could be completed in our limited timeframe.”

Hemesh Patel, property finance director at OakNorth, said: “Manchester has established itself as the second most important economic hub in the UK behind London, creating a strong driver of demand for city centre living.

“Property now sells three times as quickly here than in the capital and demand significantly outstrips supply, as evidenced by the fact that Fortis has already pre-sold almost 400 units more than 12 months before doors will be opening. The team at Fortis have exceptional knowledge of the city.”

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Perhaps a more balanced article would reflect the scandalous delays to the Adelphi project and the fact that many investors are losing out on large amounts of rental income as a result?

By Brian

Yes, I agree. I paid the deposit to secure a large two bedroom flat in Phase 2 in December 2015 hoping my daughter could move in by the end of 2017. So for me the delay is also scandalous. Half of the money is frozen. Those who want to live there as owners must rent flats somewhere else and they lose money. Investrors don’t get income so they also lose money. No business, no taxes….

By Joanna

2 investors who complain about completion dates, I am happy to refund your deposit and resell the apartments for 30% more than what you paid for them if you would prefer.

By Gareth Morgan

Should have gone to Downtown – it’s 12 months ahead of schedule! #McGoffConstruction

By Me

Downtown (Salford) is also almost 40% more expensive….. great deal for the investors….. Bridgewater Gate which is next door to Downtown was also 40% cheaper. Interesting rent comparables

By Gareth Morgan

Yes, but some people drive lada cars, whilst others drive Mercs – no comparison.

By Me

Still no sign of completion. This delay is scandalous. When will it be completed?

By Charles

December 2019 and phase 2 is still no where being completed. I too paid my deposit in Dec 2015, and have paid two further instalments. Currently paid about £86K and nothing to show for it, other than interest payments to the mortgage lender.

By Paul

Completion for Phase 3 is now predicted for Summer 2021. Quality of communicating is poor. No actual expansion about reason for delay

By Frustrated Investor