Investor Cheyne Capital Real Estate will forward fund the developer’s 144-apartment scheme on Oldham Road in Manchester to the tune of £32m.
Under the terms of the agreement, 35% of the homes will be reserved for local key workers, such as nurses, teachers and emergency services workers, at discounted rents.
The investment comes from London-based Cheyne Capital’s Impact Real Estate Fund, set up to help tackle the UK’s shortage of affordable housing.
Cheyne Capital’s investment will pay for the construction of the project and the investor will take ownership of the scheme once complete.
CBRE advised Mulbury on the transaction while Beyond Corporate provided legal advice.
Mulbury’s 12-storey development, to be built by contractor GMI Construction, will include one-, two- and three-bedroom apartments and will also comprise work, entertainment and relaxation spaces, ground floor retail facilities, and a 3,000 sq ft roof terrace.
Stuart Fiertz, Cheyne Capital’s co-founder and head of responsible investment, said: “As cities expand, keyworkers often get priced out of the central housing market and forced to either downsize or move to less accessible areas. We are committed to delivering homes in desirable locations and ensuring that they remain affordable now and into the future.
“Mulbury has an excellent track record of delivering high-quality housing in Manchester and we look forward to working together to help address the UK’s severe shortage of inclusive, affordable housing.”
Martin Bury, co-founder and director at Mulbury, added: “Cheyne’s social impact values are aligned with our own vision for providing choice and affordability in the Manchester housing market.”
The site is bounded by Oldham Road, Addington Street, Marshall Street and Chadderton Street, and is currently occupied by industrial buildings, which will be demolished under Mulbury’s plans.
Work on the project, which sits within Manchester’s burgeoning New Cross neighbourhood, will begin in February and complete in summer 2023, according to the developer.
Mulbury has also gained planning consent for two further residential-led developments in New Cross; 73 apartments on Goulden Street and a 161-unit scheme on Bendix Street.
All three of Mulbury’s New Cross schemes were designed by Tim Groom Architects.
Mulbury has appointed YOUTH Studio as the interior designer for the Oldham Road project having worked with the firm on its Excelsior Works development in Castlefield.
Deloitte Real Estate acted as the planning consultant, while Primas Law acted as legal advisor on the site acquisition and assembly.
Other members of the project team include Scott Hughes Design as the structural and civil engineer, RLB as the cost consultant and Futureserv as M&E consultant.
Gray Scanlan Hill is the ‘right to light’ advisor for the scheme, Layer.studio is the landscape consultant, dBx Acoustics is the acoustics advisor and SK Transport is the transport consultant.
BB7 is the fire engineer and Rawlings is the principal designer.