Cheyne Capital’s second UK Impact Real Estate Fund is investing £32m (€36m) to fund the development of homes with developer Mulbury.

The duo have partnered to build 144 apartments in Manchester’s New Cross neighbourhood. The 12-storey development, to be built on Oldham Road, will include one, two and three-bedroom apartments.

Mulbury expects to start demolition and remediation work on the site next month. It is expected that the building will be completed by summer 2023.

Stuart Fiertz, Cheyne Capital’s co-founder and head of responsible investment, said: “As cities expand, it is too often the case that keyworkers get priced out of the central housing market and forced to either downsize or move to less accessible areas.

“We are therefore committed to delivering high-quality homes in desirable locations – and to ensure that they remain affordable now and into the future.

“Mulbury has an excellent track record of delivering high-quality housing in Manchester and we look forward to working together to help address the UK’s severe shortage of inclusive, affordable housing.”

Martin Bury, co-founder and director at Mulbury, said: “Cheyne’s social impact values are aligned with our own vision for providing choice and affordability in the Manchester housing market.

“We’re delighted to have secured the forward funding to make this development a reality. The standard of the design and the quality of the accommodation on offer will provide an iconic new building and support the ongoing renewal of residential accommodation within New Cross.”

To read the digital edition of the latest IPE Real Assets magazine click here.