ICG Real Estate provides £100 million development loan to Salboy to fund new 556-home Manchester development

By Bridging Loan Directory 26th March 2024

ICG Real Estate, the real estate division of ICG, has provided a £100 million loan to Salboy Limited to fund the development of a major 556 build-to-sell residential scheme in Manchester’s ‘Green Quarter’ district.

Sitting on the site of the former Boddington Brewery directly opposite Manchester Arena and Manchester Victoria station, Waterhouse Gardens is well located to easily access the City’s core retail, leisure and employment districts by foot, including the vibrant Northern Quarter and Manchester College’s new city centre campus.

The completed scheme will provide a community of high spec apartments, duplex and penthouses. Residents will have access to a private clubhouse offering high end amenities and services including a swimming pool, squash and basketball courts and a private cinema.

The asset will be complemented by 30,000 sq ft of commercial space which will be home to boutique traders, independent restaurants and bars together with some office space.

Construction of the scheme has commenced with cores for each block now complete and completion still on track for 2026.

Salboy is an award winning developer with a strong track record of delivering high quality residential schemes.

To date it has delivered over 3,500 homes in densely populated areas nationwide where demand for new, quality housing is high.

While active across the UK, many of Salboy’s schemes are delivered in Manchester and neighbouring city Salford, where the company was launched and has built strong local market knowledge.

The transaction supports ICG Real Estate’s strategy to fund the development of assets in sectors which are supported by compelling long term structural drivers such as the demand for new homes.

Jai Patel, Managing Director of ICG Real Estate, said:

“This transaction offered us the opportunity to back a proven residential developer in a local market that they know incredibly well, in a sector where we have a long held conviction.

Manchester’s local economy continues to offer great opportunities to its residents in terms of jobs, leisure and education and is a city we favour, with this being the second development deal we have agreed in the city in the past 18 months.

We remain keen to focus our attention on significant transactions in the living space which align with our deep conviction calls and continue to be supported by strong underlying fundamentals.”

Simon Ismail, Managing Director of Salboy, added:

“We are delighted to partner with ICG Real Estate as work gets underway at Waterhouse Gardens, one of the largest and last-remaining regeneration sites in the UK’s fastest-growing city.

By 2026 this scheme will deliver sought-after city-centre living for many of the thousands of students and young professionals that choose to stay in, relocate or return to Manchester every year to launch and progress their careers.”