Europa Capital has expanded its UK private rented sector (PRS) portfolio with an agreement to buy a development in Greater Manchester.
The manager’s pan-European value-add Europa Fund V fund has joined forces with US multifamily operator Atlas Residential to buy the 100 Greengate development in from Renaker Build for an undisclosed sum.
The 44-storey residential tower will comprise 349 units across 380,000sqft, including one, two and three bedroom apartments.
Construction is due to complete in early 2019. The completed development will be managed by Atlas Residential.
Europa Capital has invested in or developed over 7,000 bed spaces across PRS and student accommodation in key UK and continental European locations since 2012.
Hugo Black, a partner at Europa Capital, said: “This acquisition not only builds on our existing track record in UK PRS but presents a compelling opportunity to invest in one of the fastest growing cities in the UK with a thriving economy and an expanding population.
“There is a significant demand for new homes in the city and we look forward to working closely with Atlas Residential to bring an attractive residential product to the market in wider Manchester.”
Atlas Residential moved into the UK PRS sector in August 2015 in partnership with Rockspring. The joint venture partners bought a 145,544sqft residential development site in Southampton.
Ravi Malli, the head of asset management at Atlas Residential, said: “We are excited to be extending our management footprint to what will be our second community in Greater Manchester.”
Malli said this acquisition is consistent with the company’s theme of participating in urban residential regeneration activity in key cities throughout the UK.
Daren Whitaker, Renaker Build’s managing director, said: “The deal demonstrates the strength of the local market, the extremely high quality of our product and the commitment to the city region that institutional investors are prepared to make.
“It also gives us great confidence as we take forward our plans for the regeneration of the wider Greengate area, which will ultimately create a new destination for locals and visitors alike.”
100 Greengate is the second PRS scheme to be delivered by Renaker in the city.
In 2016, LaSalle Investment Management bought a 497 build-to-rent scheme from Renaker Build.
