Europa Capital it has entered into a forward funding agreement to acquire a new build-to-rent (BTR) residential development, in Manchester’s New Cross district, from experienced housing developer Mulbury. Europa Capital has made the acquisition on behalf of its latest value add fund, Europa Fund VI, as it continues to expand its vertically integrated build-to-rent platform in the UK.
The 12-storey building, which is located on Bendix Street, will comprise a total of 161 build-to-rent units, including a mix of one-, two- and three-bedroom apartments at mid-market rents, across c. 138,300ft² of space, as well as 1,700ft² of ground-floor commercial space. Featuring extensive communal spaces, including a large roof terrace, and 166 cycle spaces, the accommodation will offer residents excellent amenities. GMI Construction has been appointed as main contractor with work starting in October and due to complete by the end of 2023.
The New Cross district of Manchester is a historic area of the city which is undergoing significant regeneration whilst retaining its former Victorian industrial feel. The area has been designated by Manchester Council as a residential extension of the Northern Quarter, which is known for its vibrant atmosphere and cultural attractions.
Jason Oram, Partner, Fund Manager at Europa Capital, added: “Against the backdrop of a significant shortage of housing in the UK, the build-to-rent sector has proven its resilience during the pandemic, as well as from wider structural change. During times of high inflation, the asset class has historically been a very good hedge and for these reasons, institutional investors are increasing their capital allocations to the sector.”
Hugo Black, Partner at Europa Capital, commented: “We continue to believe in the attractiveness of residential urban locations, particularly with young professionals, who want to remain close to city centre areas. This development is in an exciting part of Manchester, which is experiencing strong levels of demand, whilst building on our existing presence in the city, as well as our UK wide residential platform.”
Martin Bury, Co-Founder and Director at Mulbury, added: “This deal marks another significant milestone in the regeneration of New Cross and will contribute hugely to the area’s ongoing transformation into a vibrant and thriving part of the city. We’re thrilled that Europa Capital share our vision for the site and our ambition to provide exciting city living opportunities that help Manchester deliver on its homes strategy.”
