Invesco provides £45.4m forward funding for Manchester build-to-rent development
Invesco Real Estate (Invesco) has provided £45.4 million in forward funding for 263 build-to-rent units at a development in Salford, Greater Manchester.
The deal is Invesco’s first build-to-rent project outside of London and the South East and is expected to be delivered in March 2019.
John German, Senior Director, Residential Investments at Invesco Real Estate said:
“Our BTR programme is focused on London, the South East as well as the main UK regional cities, so we are delighted to announce our first regional project. With this investment, our programme now has circa 1,300 units under management with a strong pipeline in due diligence. We have an experienced, dedicated residential team in place who are fully focused on the expansion of our BTR programme due to the increasing appetite we are seeing from a variety of global investors currently providing us significant capital to deploy.”
Outward Wharf, located in Salford, a borough of Greater Manchester, will provide 263 purpose-built units within three self-contained blocks, ranging from seven to 17 storeys. The development is located about a 10-minute walk from Manchester city centre and forms part of the ongoing regeneration programme taking place in Salford.
“The location and accessibility to local infrastructure, design, configuration and quality of the scheme are key attributes for this project. Therefore, a fundamental part of our BTR programme is to work with reputable partners to ensure our units are designed and built for purpose, and that operational efficiencies exist with an on site property manager. On this project, Invesco is working with Endeavour and Lagan Construction Group, while our onsite property manager will be Greystar, a business partner with whom we have a long-standing relationship from our 30-year multifamily programme in the US.”
Jonathan Gwynne, Principal from Endeavour, said:
“We are delighted to have agreed that Endeavour’s Phase One 263 unit joint venture development with Lagan Construction Group in Salford will be Invesco’s first regional BTR project. The team are committed to delivering a high quality project for Invesco as part of our continuing investment programme in the North West region.”
“In Manchester we have developed a product which is tailored to the local rental market and is expected to attract sharers, young professionals and young families. There is likely to be strong tenant demand for BTR in this location given limited availability of rental units. Manchester is a key regional market and one of the UK’s most successful city-regions with a large professional hub, making it one of the UK’s centres for business, financial and professional services outside London.”