CDL Hospitality Trusts has bought the land and agreed to fund the development of the 25-storey Manchester apartment building from Packaged Living and Fiera Real Estate.
CDLHT spent £9.5m to acquire the land on the south-east side of Longacre Street in Piccadilly East.
The deal includes progressive payments totally £58.2m throughout the construction of the development, with £5.6m to be paid following completion.
Adding in a projected £3.1m for furnishing and fit-out expenses, as well as various professional fees, CDL estimates the total transaction cost is £78.9m on the deal.
Stabilised net property income yield is estimated to be 5.1% for The Castings.
The Castings will have 352 build-to-rent apartments ranging from studios to three-bedroom units. Its total residential area will take up 219,600 sq ft, while its amenities and retail space will spread out on 17,300 sq ft. Those amenities include a gym, cinema and roof terrace.
CallisonRTKL designed the building, which will range from seven to 25 storeys in height.
The building’s plans include 20 car parking spaces and storage for 350 bicycles.
The Castings marks CDHLT’s first foray into the BTR sector in Manchester.
Lead contractor Midgard is already working on site demolishing the site’s current buildings. The Castings project is projected to complete in May 2024.