Legal & General Investment Management has exchanged contracts to buy the 37-storey tower at Deansgate Square, its second purchase after West Tower.
The acquisition of the 276-apartment scheme has been made on behalf of LGIM’s two largest funds, the UK Property Fund and Managed Fund in a 50:50 ownership structure, for an undisclosed sum.
Renaker’s Deansgate Square comprises four towers ranging in height between 37 and 64 storeys, all of which have been designed by architects SimpsonHaugh.
The deal is Managed Fund’s first build-to-rent acquisition. Previous investments include the purchase of hotels, healthcare facilities and student accommodation.
For the UK Property Fund, however, this acquisition is another in a string of build-to-rent acquisitions, the most recent of which was a 189-apartment site in Chelmsford.
CBRE advised on the transaction.
Michael Barrie, director of Real Estate Fund Management at LGIM Real Assets, said: “This acquisition represents the coming together of two LFIM Real Assets’ largest funds as we continue to diversify our exposure to alternative sectors.”
Tom Sinclair, residential investment director at CBRE, said: “The North Tower marks CBRE’s second transaction with L&G at Deansgate Square and demonstrates continued confidence in Manchester’s residential market following strong occupier demand at the West Tower.
“On completion, the North Tower will provide exceptional residential accommodation, providing more renters with the opportunity to experience life at this desirable residential address.”