Apache Capital Partners has completed its £128m (€170m) investment in a Private Rented Sector (PRS) scheme in Manchester.
The Middle-Eastern-backed investment manager said it was fully funding Angel Gardens through its joint venture with Moda Living.
As reported last May, the 34-storey scheme, which has full planning consent, is being used to seed the joint venture, which has £1bn of UK PRS assets in its development pipeline.
The UK PRS market, worth £900bn, “remains fragmented” and “overwhelmingly dominated” by small, private-let landlords, according to Richard Jackson, co-founder and managing director at Apache.
“We are focused on that significant gap between increasing tenant demand and the under-supply of institutional grade and scale of stock in PRS, which will be the next institutional assets class, as we have seen with the student accommodation market,” he said.
The 520,000 sqft scheme is part the wider Co-op/Hermes NOMA regeneration project in the city centre, bordering the Northern Quarter.