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.”