M&G Real Estate is investing for the first time in the UK’s north-west region for its private-rented sector (PRS) strategy.
The manager is financing the £27.6m (€32m) development of 135 new homes in Manchester.
The scheme, at 97-105 Port Street in the city’s Northern Quarter, is due to be completed by mid-2018.
The deal was made on behalf of M&G Real Estate’s UK residential property strategy, launched in mid-2013 for UK and international investors.
The scheme includes mainly one and two-bedroom flats.
Alex Greaves, head of residential investment, said: “This investment marks our entry into the strong regional market in the north, further extending our significant engagement in UK PRS, which includes partnerships and deals with house builders Crest Nicholson and Telford Homes.”
The deal takes M&G’s residential property commitments to around £545m of committed capital for UK and international investors, including pension funds, insurance companies and local authorities, he said.
“We are confident the build-to-rent sector offers long-term growth potential, with considerable diversification benefits for investors,” he added.
The development will also include 6,000 sq ft of commercial office space at ground level.