L&G exchanges contracts to buy Renaker tower
Legal & General Investment Management is understood to have exchanged contracts to buy one of the towers within Renaker’s 1,500-apartment Owen Street development, currently under construction in Manchester.
The scheme, known as Deansgate Square, is divided across four towers of between 37 and 64 storeys, designed by SimpsonHaugh. Renaker is on site building the first and third-highest; a 44-storey tower which recently topped out, and the 64-storey element which will be one of the tallest residential properties in the UK. Groundworks are also beginning on a third tower.
It is the 44-storey skyscraper, which has a development value of £200m, which has been purchased by L&G. The investor, which already has a strong presence in Manchester due to its work with English Cities Fund at New Bailey, is understood to have exchanged contracts on the sale earlier this week.
L&G is set to operate the building, which totals 350 flats, through its build-to-rent arm.
L&G and Renaker have been contacted for comment.
Another big vote of confidence in the Manchester economy. Well done Renaker.
By Andy T
Is it? It’s a big vote of confidence in the resellable value of this scheme. Renaker are first to the post, but other schemes may well completely miss the market traffic.
By Not counting eggs
All the development currently happening in Manchester is great and as the previous commenter said, a big vote of confidence to the Manchester economy. However, all of these towers are being sold off to big (mostly foreign) inverters and are not even being offered to the UK market. I’m not even saying they have to be affordable for first time buyers, they can be middle/premium for all I care, but the idea that all of this development is happening yet is making it impossible for people in Manchester climb up/onto the property ladder.
By Disappointed
Disappointed, you can’t blame the developers or MCC for that. Try the banks – they are a) unwilling to lend to buyers without massively impossible deposits, and b) are unwilling to lend to developers without massively impossible amounts of the scheme being pre-sold. The sad thing is that none of these schemes would get past the drawing board without overseas investments, which in turn would make the housing crisis worse. It’s a sorry state of affairs but not surprising when we have spineless govt after spineless govt willing to let banks do what the hell they please or have the guts to intervene in dysfunctional markets when necessary now and then.
By Loganberry
Loganberry – You cant blame the government for banks not lending. Its a free market where there is a choice what to do. I don’t know what the answer is though!
We had the Local Authority intervene in a dysfunctional market in Northwich with the Barons Quay, and Northgate in Chester. Look how that turned out!
By What to do?
This scheme is all PRS as far as I am aware, so would never be offered for individual private sale @Disappointed
By Bradford
Generally always have felt that investment funds are dull witted and slow and when they start to wade into a market that is generally around the time the party is coming to an end….
By Suspicious
If your definition of success is merely to emulate the London model of ignoring the local needs of your resident population in favour of selling off plan to foreign investors then I am sure it will be a roaring success……..
By A developer
Wow Manchester is booming.
By Scholes
Tip: make sure you witness the air leakage testing – main contractors have a habit of not doing them properly.
By Lloyd Hitchmough
Another box of tatt
By Ken
Yet another PRS scheme in Manchester, the market will soon be far too saturated with them. When will we get affordable housing in the city for the people of Greater Manchester?
By Anonymous
Plenty of affordable homes to had in surrounding neighbourhoods around Manchester City Centre – and even more so further afield in GM…
By Anon