Residential developer Select Property Group has signed heads of terms on a joint-venture partnership deal with the Greater Manchester Property Venture Fund to deliver its £247m Affinity Living PRS scheme at Circle Square, the key Manchester scheme on the former BBC site on Oxford Road.
The deal will secure finance to deliver the largest fully funded PRS scheme in Manchester to date. Although the breakdown of each partner’s stake has not been disclosed, both boards have signed the deal off. Construction is scheduled to start on the 677-unit site in August. The scheme is split across two buildings and includes 16,140 sq ft of amenity space such as lounge areas, co-working spaces and gyms.
Mark Stott, chief executive of Select, said: “This landmark deal will cement the delivery of all residential components of the Circle Square scheme. Our customer-led approach to the property market, alongside our proven operational model is hugely appealing to investment funds and we’re looking forward to working with GMPVF and updating the industry over the coming months.”
Select said that more than 1,800 apartments will be delivered in Manchester under the Affinity Living brand over the next three years. Ken Knott, the firm’s chief development officer, said that the Vita student accommodation set to open at Circle Square for the next academic year is 40% let.
The office element of the £750m Circle Square is also due to be on site before the end of 2017. Bruntwood chief executive Chris Oglesby said that construction of the second of two office buildings is to be moved forward, meaning a single tranche of 400,000 sq ft will be delivered. The procurement process has started.
Oglesby added that deals are close to being completed with operators for both the budget and boutique hotels in the scheme.
Meanwhile, Bruntwood has released new images of Circle Square.
Click image to launch gallery