Legal & General (LGIM Real Assets) has exchanged contracts on a new Build to Rent (BTR) tower “North Tower” in Deansgate Square, Manchester. The acquisition, which is in line with LGIM Real Assets’ strategy to strengthen its exposure to alternative and operational sectors, has been made on behalf of its two largest balanced funds, the UK Property Fund and the Managed Fund, in a 50:50 ownership structure. The deal represents the Managed Fund’s first BTR acquisition as part of a sustained push into alternative sectors.
Designed by world-renowned architects SimpsonHaugh, North Tower sits at the heart of the Deansgate Square development, a cluster of four elegant residential towers surrounded by carefully curated amenity, commercial and public realm spaces. North Tower provides 276 luxury apartments of one-, two- and three-bedrooms, across 37 storeys. Residents will benefit from exclusive access to an unrivalled amenity building which includes a two-storey gym, 20m swimming pool, sauna, steam room, fitness studios and a full-size indoor sports hall. The building was purchased from the developer, Renaker; one of the UK’s leading property developers with a proven track record in design, build and delivery.
Michael Barrie, Director of Real Estate Fund Management at LGIM Real Assets, said: “This acquisition represents the coming together of two of LGIM Real Assets’ largest funds as we continue to diversify our exposure to alternative sectors. Alongside hotels, self-storage and student accommodation, BTR will continue to be a preferred subsector, giving us real-time access to occupational markets with robust growth in rental income."
