Two Asian property developers have committed to residential schemes in Manchester, their first investments in the UK.
Hong Kong-based developer Top Spring International and Singapore’s Metro Holdings are funding the two schemes in the UK city, taking equal stakes in a joint venture with developer Scarborough.
Scarborough said the two projects in New Islington and west Manchester have a gross development value of £600m. Top Spring and Metro will each hold 25% of the joint venture, with Scarborough retaining a 50% stake.
Winston Choo Wee Leong, chairman of Metro Holdings, said it had been attracted by the dynamism of Manchester’s residential market.
Kevin McCabe, chairman of Scarborough, said there was “very strong demand” for housing in central Manchester, and, as in many parts of the UK, a shortage of supply.
The city has seen increased appetite from both UK and international investors in recent months. M&G Real Estate and Hermes have both committed to significant Manchester construction schemes, respectively investing in Spinningfields Square and The Co-operative Group’s £800m NOMA redevelopment scheme.
An analysis carried out by Legal & General Property last month detailed the rationale behind the move to UK regional cities.
Manchester’s £800m Airport City scheme has also attracted international capital. Beijing Construction Engineering Group has invested in the mixed-use project, taking a 20% stake alongside the Greater Manchester Pension Fund (GMPF), which has a 10% stake.