Invesco Real Estate is to develop a 261-bed Purpose-Built Student Accommodation (PBSA) asset in Manchester in partnership with Alumno Group.
Set to be completed in the third quarter of 2026, the development site has been acquired on behalf of Invesco Real Estate Europe Fund III – SCSp (Europe III). The site is located less than a 10-minute walk from the centre of the University of Manchester campus and a c. 15-minute walk to Manchester Metropolitan University.
The 4,645m2 property will comprise 207 cluster beds, of which 52 will be affordable, and 54 studios. The project is targeting both an EPC A rating and BREEAM Excellent. Among other features, hot water will be generated via air-source heat pumps while 74 cycle spaces will be made available, in accordance with BREEAM standards.
Rob Johnston, Managing Director, Head of Investments, UK & Nordics, Invesco Real Estate, said: “The UK’s PBSA market continues to offer strong investment opportunities, particularly in critically underserved cities such as Manchester. We are delighted to have secured this well-located site and look forward to working with Alumno to deliver a high-quality product to the market, which will ultimately create value for our investors.”
Kevin Grundy, Managing Director – Fund Management, Europe, Invesco Real Estate, said: “Market repricing and the temporary retreat of core capital have combined to open up a number of attractive opportunities around Europe in sectors with positive tailwinds such as PBSA. We expect Europe III to be active in this sector as well as others where the risk/return balance has moved in favour of value-add investors who are prepared to move with speed and conviction.”
Alumno Founder and Managing Director David Campbell added: “It is a significant step and highlight for the company to be working on this exciting project, with such an established and well-regarded global investment leader, such as Invesco Real Estate. We are looking forward to progressing the project with the Invesco team and delivering a first-class building, our second in Manchester.”
Invesco Real Estate was advised on this transaction by Lewis & Partners.
Image source - Pexels.
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