Precede Capital Partners has provided a €259m (£227m) four-year whole-loan facility to Downing Living. The facility will be used to finance the construction of First Street, a multifamily development in Central Manchester.
Consisting of 1,790 units across three buildings, the First Street development will be targeted at new graduates and young professionals, with units ranging from studio apartments to five-bedroom shared accommodation. Downing, a vertically integrated real estate developer and manager with a 30-year track record and over €2.3bn (£2bn) of real estate developments delivered across the UK, will construct and manage the property. Completion of phase one is scheduled for August 2024, with phase two scheduled for delivery in March 2025.
The development, which is situated in the heart of Manchester city centre’s thriving First Street regeneration area, represents an ideal commuting location and is within walking distance of Deansgate, Oxford Road and Manchester Metropolitan stations.
The lenders’ ESG due diligence rated the project highly due to Downing Living’s leading sustainability ambitions. The development will have heating provided by air source heat pumps, EV charging points and rooftop solar PV provision. Downing Living is implementing a strategy for the asset to be net zero by 2038 depending on the extent of grid decarbonisation and connection to the Civic Quarter Heat Network, meaning it will be compliant with ‘net-zero ready’ requirement as contained in the Future Homes Standard.
George Downing, founder of the Downing group of companies, which owns Downing Living, said: “We are delighted to be working with Precede Capital and progressing another landmark scheme for the city of Manchester. Our First Street development will complete the long-awaited transformation of a key site at the southern gateway to what is one of Europe’s most exciting and progressive cities. First Street itself is part of a wider story of investment and confidence in Manchester, a future-proofed ‘15 Minute City’ where we will offer brilliant options to live, work and play on your doorstep. We have an excellent track record, working closely with the council, to deliver transformational city-centre regeneration schemes.”
David Jerrard, Chief Credit Officer at Precede Capital, said: “We are delighted to have closed this financing for a high-quality asset and to have provided the Downing Living team with the certainty and backing required to deliver an important project that will help meet the sustained demand for co-living schemes in this market. We are also particularly pleased to have closed our inaugural deal in the north of England, an important milestone which is testament to our team’s extensive industry relationships and our ability to identify and transact on high-calibre opportunities across the UK.”