Select Property Group has completed a funding deal with the Greater Manchester Pension Fund and a consortium of senior lenders made up of NatWest, Lloyds Bank Commercial Real Estate and Greater Manchester Housing Fund to deliver build-to-rent apartments at Circle Square, Manchester.
The lenders will back the development of Select’s £247m Affinity Living buildings alongside public realm works at the £750m Circle Square, where work has started on site with contractor John Sisk & Son. The specific amount of money being provided to Select was undisclosed.
Affinity Living at Circle Square consists of 683 apartments across 37 and 17-storey buildings, with facilities including shared lounge areas, co-working spaces, gyms and private entertaining spaces.
Mark Stott, chief executive of Select, said: “This marks a great start to the year for the group and is a huge milestone for both Affinity Living and Circle Square.
“We are delighted to be working with such strong and dedicated partners and I now look forward to seeing the progression of the scheme over the coming months and years.”
GVA is investment manager for the Greater Manchester Pension Fund. Gareth Conroy, associate at the firm, said: “This is a key residential project in the city centre which continues GMPVF’s drive to invest in housing projects in Greater Manchester.
“Given the commencement of other construction activity in the office, hotel and parking elements of Circle Square, we soon expect it to be one of the most sought after-destinations in the city. GMVPF look forward to working alongside Select and other investors to deliver this exciting project.”
Greater Manchester Combined Authority’s lead chief executive for housing, planning and homelessness, Steve Rumbelow of Rochdale Council, said: “We are pleased to be working with other major funders to support the joint venture to progress this important and exciting scheme.”
Select said that the first phase of Affinity Living at the project will complete in the fourth quarter of 2020, with full completion scheduled for Q1 2021.
Affinity Living is Select’s aspirational residential brand, sitting alongside student accommodation arm Vita – which will also have a presence at Circle Square – and serviced apartments business CitySuites. The Affinity element of Circle Square was approved in summer 2016, with Sisk appointed last April.
Sisk is also engaged on Bruntwood’s office project within Circle Square, starting work in November on two buildings totalling 400,000 sq ft, while Russells Construction this month announced a two-year build on a hybrid hotel and car park building.