M&G Real Estate is to finance Mulbury’s £27.6m development of 135 homes at 97-105 Port Street in the Northern Quarter, as its first entry into the private rented sector in the North.
Designed by Tim Groom Architects, the scheme is due to be ready for occupation by summer 2018. The homes are mainly one and two bedroom apartments, with a communal roof top garden and balconies for all apartments, a reception and 6,000 sq ft of commercial office space at ground level.
The deal was made on behalf of M&G Real Estate’s UK residential property strategy, launched in mid-2013 for UK and international investors, led by head of residential investment, Alex Greaves.
Greaves said: “This investment marks our entry into the strong regional market in the North West, further extending our significant engagement in the UK private rented sector, which includes partnerships and deals with housebuilders Crest Nicholson and Telford Homes.
“This takes M&G’s residential property commitments to around £545m of committed capital on behalf of UK and international investors, including pension funds, insurance companies and local authorities.
“We are confident that the build to rent sector offers long-term growth potential with considerable diversification benefits for investors.”
James Alderson, head of Mulbury City, the division which specialises in city centre build-to-rent projects, said: “We are thrilled to have secured the backing of such a well-established and prestigious investment house as M&G for this particular scheme. It was clear as soon as we began talking that they had the appetite and expertise to make this project a real success.”