Carlyle’s Global Credit platform has provided Round Hill Capital with a c. €134.5m development loan to fund the construction of Fairfax, a 488-unit luxury build-to-rent (BTR) scheme in Manchester, UK. It represents the first transaction between the two parties.
Round Hill Capital acquired the Fairfax development via a forward funding agreement in August 2022. The development comprises two towers with 488 one-bed and two-bed high-quality apartments. It offers exceptional amenities including a gym, 24-hour concierge, co-working space and a roof terrace. The development is ideally located within five minute's walk from Manchester Piccadilly station and less than a km away from Manchester city centre, serving as the gateway to the Portugal Street East masterplan regeneration area.
Olympian Homes is the development manager on the scheme, with RG Group serving as the main contractor. Ground works have been completed, with the concrete cores well progressed.
Taj Sidhu, Head of Carlyle European and Asian Private Credit, said: “This is a unique opportunity to fund a large scale and landmark residential development alongside a highly established living sector investment manager, in what is a prime area of Manchester. Leveraging the resources and experience of Carlyle’s Global Credit team, the development will deliver the very best of city centre living, with luxury amenities and contemporary design throughout the apartments and communal spaces.”
Tom France, Head of UK Round Hill Capital, added: “Fairfax is our flagship UK Build to Rent scheme, in what is one of our high conviction sectors where we have ambitions to continue scaling our exposure. Carlyle is a blue-chip lender, and their support is an endorsement of our vision for the scheme. Manchester is one of the UK’s most vibrant and dynamic cities which is now firmly established as the UK’s dominant alternative to London. This has underpinned a growing influx of young professionals and students for whom thoughtfully designed rental properties in central locations are highly sought after. With a limited development pipeline, we anticipate strong demand for what will be one of the city’s premier BTR schemes.”
Image provided by FTI Consulting.
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