Legal & General Capital and Dutch pension fund manager, PGGM, have announced that they will forward fund the second phase of homes to be built at Salford’s New Bailey, which another arm of Legal & General is building out with Muse and the Homes & Communities Agency in its English Cities Fund joint venture.
The 110,000 sq ft scheme was approved in December, and is situated on the banks of the River Irwell, next to ECf’s New Bailey development, which is just over the bridge from Spinningfields. It will be targeted at the built-to-rent sector.
Designed by AHR Architects, the building will be made up of 135 flats and will sit alongside ECf’s first 90-apartment PRS scheme, which is currently on site and is also being forward funded by Legal & General Capital.
The completed buildings will be managed by LGIM Real Assets.
The PRS-focused joint venture between Legal & General and PGGM, which was launched in February, now has a pipeline of nearly 800 new homes, with a total capital commitment of over £250m.
The construction is due to begin in April 2016, with practical completion to be delivered in March 2018.
Phil Mayall, development director at ECf, said: “The investment from LGC and PGGM is further testament to the momentum that is building on site as the scheme progresses at a pace. The two Build to Rent developments are the first of their kind to achieve institutional investment in Manchester, which means that real progress is now being made to bring both schemes forward.
“The progress that is taking place on the wider New Bailey development and the surrounding infrastructure is also extremely positive for the area. Improvements to the Ordsall Chord recently commenced in the city. Once complete, the Ordsall Chord will connect Piccadilly, Oxford Road and Victoria stations in Manchester for the first time. These much needed updates to the rail network will vastly improve connectivity and accessibility, bringing more businesses, people and investment to the area.”