Legal & General has exchanged contracts on the West Tower at Renaker’s Deansgate Square tower scheme, a deal revealed last week by Place North West.
L&G said that it has introduced a “a range of significant BTR design improvements to the tower, in order to meet the specific requirements of today’s elective renters”. The changes made involve minor tweaks to the specifications of apartments, with more significant changes at ground floor level and in communal areas – as there will now be staff in the building 24/7, management space, staff office, post room, reception and lounge space have been added in.
The 44-storey West Tower, designed by SimpsonHaugh & Partners, will be the tallest build-to-rent scheme in the UK. It is understood to have a value on completion of £200m.
The acquisition takes L&G’s development pipeline in Manchester to more than 750 units, the investor stating that it sees Manchester a target city with an under-served housing market that will see 3,465 “rental households” forming every year over the next two decades, based on research by Experian. L&G has also backed the development of Slate Yard in Salford, the third phase of which is due to start on site soon.
The 350-unit West Tower recently topped out, and on completion will also include 147 car parking spaces and ancillary commercial space. It forms one of four towers at the 1,500-unit Dansgate Square, which will range in height from 37 to 64 storeys – the tallest is also currently on site, while groundworks have begun for a third tower at the Owen Street scheme. All are designed by SimpsonHaugh.
The acquisition has been made through LGIM Real Assets’ open-ended Build To Rent Fund. L&G was advised by CBRE.
Dan Batterton, BTR fund manager at LGIM Real Assets, said: “As demand for rental accommodation continues to outweigh supply, Legal & General is increasing the scale of its Build to Rent portfolio, UK wide. The acquisition of Deansgate and our award-winning Slate Yard development are excellent examples of Legal & General investing in long term sustainable schemes.
“We are supporting wider urban regeneration through utilising existing local infrastructure and maximising land density in areas where there is a housing shortage. Manchester is the second most populated area in the UK with a particularly diverse economy. The apartment sizes, amenities, specification and affordability across our multiple schemes will allow us to cater for a wide demographic across this varied community.”
CBRE’s Tom Sinclair added: “We are delighted to have secured the West Tower for Legal & General, which forms part of the Deansgate Square development. This really is groundbreaking for elective renters in Manchester, bringing a sophisticated and stylish residential offer into the heart of the city.”
The professional team on Deansgate Square also includes Deloitte as planner and WSP as building services consultant.