Swiss Life Asset Managers and its subsidiary Mayfair Capital have bought their first residential development in the UK for an open-ended real estate fund.

The Swiss Life fund has acquired the Duet development in Manchester from the Moorfield Group managed Moorfield Real Estate Fund (MREF) IV fund for £73.9m (€86m).

Located in Salford Quays, Duet was opened in 2019 and comprises 270 one, two and three-room apartments.

Jos Seligman, transaction and fund manager at Mayfair Capital Investment Management, said: “Having created the conditions to expand Swiss Life Asset Managers’ residential real estate investments in the United Kingdom, this purchase is the first of several planned acquisitions.

“Duet is an excellent fit for our thematic focus on high quality modern residential developments which are designed for rental, meet our high ESG standards and provide an attractive demographic profile. As a long-term owner, we will work with JLL as managing agent and the experienced on-site team to maintain the high level of service residents already receive.”

Christine Bernhofer, CEO of Swiss Life Kapitalverwaltungsgesellschaft and COO of Swiss Life Asset Managers in Germany, said: “This transaction represents a perfect start in the UK market, which provides further diversification for our fund.”

Ross Netherway, the head of origination at Moorfield Group, said: “We are proud to have developed Duet together with Glenbrook. The project set a new standard for residential properties in Salford Quays.

“This transaction is our third successful sale of a fully stabilised residential property in the past year and is in line with our value creation strategy. We have recently achieved a first close of MREF V, our fifth value-add fund, which will continue to invest in sectors supported by structural drivers such as demographics, societal shifts and technological disruption.”

CMS and JLL acted for Swiss Life and Mayfair Capital. Knight Frank and Shoosmiths acted for Moorfield.

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