Select secures £40.2m loan for two towers
Challenger bank OakNorth has agreed a deal to fund the development of two Select Property Group residential towers, Laurence Place and Exchange Point, at Greengate.
The buildings will be the first developed under Select’s latest brand, Origin Homes. Exchange Point will comprise 147 apartments in an 18-storey tower, while Laurence Place will offer 209 apartments over 16 floors.
Eamonn O’Rourke, property finance director at OakNorth, said: “The team at Select have completed and sold a diverse range of products from student accommodation to serviced apartments, totalling over £500m GDV across the UK. We’re excited to be completing on our largest deal to date with them and look forward to working with them on additional projects in the future.”
According to Select’s website this morning, 81% of apartments at Laurence Place are now sold off-plan. Murraywood Construction started demolition and site clearance for the project in April this year for the scheme, which is to be delivered next to Select’s CitySuites building at Embankment West.
Exchange Point is one of two further towers consented at the same time as Laurence Place, the third also being 18 storeys and around 150 apartments.
Mark Stott, founder and chief executive of Select, said: “As the city where we’re headquartered and one where we’ve completed several large-scale residential projects, Manchester plays a very significant role in our business and in our portfolio.
“We’re delighted to bring this development to the area and we’re grateful to the team at OakNorth for their support on the transaction. Projects of this scale typically take months to complete, but they were able to do it in a matter of weeks.”
Select’s other brands are student accommodation business Vita, CitySuites and PRS brand Affinity Living.
OakNorth was launched in September 2015 by Rishi Khosla and Joel Perlman and has grown its loan book to £1.7bn. It reported pre-tax profit of £10.7m last year.