renaker atlas europa

Renaker forward-sells Greengate PRS tower

Europa Capital and joint venture partner Atlas Residential are to acquire 100 Greengate, a 44-storey private rented sector residential development in Salford, from Renaker Build.

The development, formerly known as Exchange Court, topped out in March 2018 and is set for completion early this year. It includes 349 apartments, varying from one to three bedrooms in size, and offers resident facilities including gym, concierge, lounge and a rooftop landscaped garden.

Designed by OMI Architects, the project was backed by a £33m loan from Homes England, formerly the Homes & Communities Agency, and also includes a 16-storey elevation.

Europa Capital, which is majority-owned by Mitsubishi Estate, has made the acquisition on behalf of its pan-European value-add fund, Europa Fund V. US-based Atlas is also a partner in the Green Rooms, a 19-storey residential development in MediaCity, where it is partnering with IP Investment Management

Close to the Victoria station end of Manchester city centre, Greengate is Salford City Council’s key area of development for residential, with around 2,000 masterplanned homes coming forward in the area. Renaker is a key player in the area, having delivered close to 500 units in Greengate One, a two-tower PRS scheme completed in 2017. LaSalle bought this scheme for around £110m.

Daren Whitaker, managing director of Renaker Build, said: “We are delighted to have agreed the forward sale of 100 Greengate to Europa Capital and Atlas Residential. The deal demonstrates the strength of the local market, the extremely high quality of our product and the commitment to the city region that institutional investors are prepared to make.

“This also gives us great confidence as we take forward our plans for the regeneration of the wider Greengate area, which will ultimately create a new destination for locals and visitors alike.”

In October last year, Renaker bought the Trinity Islands site from Allied London, a project with the capacity for 1,400 homes.

Europa Capital has invested in or developed over 7,000 bed spaces across PRS and student accommodation in key UK and Continental European locations since 2012. The completed development will be managed by Atlas, which has acquired and managed more than 70,000 apartments in the US and has established a UK residential platform of 851 units to date.

The deal between Atlas and Europa was brokered by Lambert Smith Hampton. Ian Scott, national head of build to rent at LSH, said: “This substantial transaction continues to show how attractive the Manchester residential market is for institutional investors and that build to rent is now recognised as a growing and specialist market.

“The size of this deal reflects the strength of demand in Manchester, thanks to aggressive population growth, urbanisation, strong wage growth, increasing graduate retention and a raft of corporate occupiers outlining their plans to move to the city and create new jobs. The suggestion that Manchester is over-supplied is ill-founded – the city is booming and it’s driving significant investor interest.”

Hugo Black, partner at Europa Capital, said: “This acquisition not only builds on our existing track record in UK PRS but presents a compelling opportunity to invest in one of the fastest growing cities in the UK with a thriving economy and an expanding population. There is a significant demand for new homes in the city.”

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Never heard of population growth being described as ‘aggressive’ before, but apparently it is!

By UnaPlanner

Great deal and good news for Renaker – Greengate is shaping up nicely. LSH seem to be pushing forward in the PRS space pretty quickly.

By The Old Faithful

Very surprising – PRS will be next big casualty of the 2019 downturn. Between now and 2020 there will be approximately 13,000 new residential apartments coming on-stream within the city boundary. One of the first PRS schemes in Greengate took over 12 months to fully let – with no other PRS competition…

By Dirk

Dirk – all that will happen is purpose built PRS stock will become the norm and the last cycle stock in the buy-to-let market will suffer. The city is booming and more and more people cant be bothered with the grind of commuting, stuck on Regent Road and Chester Road for hours on end… Also – 500 units in 12 months sounds pretty compelling? 41 lets per month?!

By BTR Rocks

Yes but conversely the Manchester Life product in Ancoats & NI was let very quickly. Location will become more important as competition increases between PRS operators.

By Anon

Can someone tell me if any of these PRS schemes deliver affordable housing (on-site / commuted sum)?

Or is it a proportion as affordable rent?

By Bobby Zamora