Real estate investment manager Barings has agreed the forward funding of a purpose-built student accommodation (PBSA) asset in Manchester with developer McLaren Property for £65 mln (€76 mln).
Barings agreed the deal on behalf of a pan-European strategy to acquire core real estate.
With full planning permission already secured, the St Gabriel’s Hall development on Oxford Place in Manchester is a part-newbuild, with the construction of two new blocks, and part-refurbishment of two heritage buildings, delivering 319 student rooms totalling 104,259 ft2 (9,686 m2), with an additional 5,005 ft2 of amenity space.
Completion is expected in summer 2025, enabling the first residents to move in in time for the start of the 2025/26 academic year.
Ben Pile, head of European residential investment and asset management at Barings, said: 'St Gabriel’s Hall will be the fourth PBSA scheme to be delivered by Barings in the UK on behalf of our capital partners – and the second in Manchester.
'Given the continuing supply-demand imbalance for purpose-built student accommodation in Manchester, St Gabriel’s Hall will provide an attractive proposition to students who will find the mix of quality specification, extensive amenity spaces and attractive landscaped grounds, proximity to world-class institutions, and excellent transport links very appealing.
'We are delighted to be partnering with McLaren Property, who are a well regarded developer in the PBSA market.'
The development is just to the south of the University of Manchester and the Royal Infirmary in an established area of PBSA in Manchester.
St Gabriel’s Hall will target strong ESG credentials, with the newbuild element set to achieve EPC A alongside a BREEAM excellent rating.
The refurbishment of the underutilised heritage buildings will also have major environmental benefits to the developments embodied carbon rating and footprint. The buildings will be partly powered by air source heat pumps to produce hot water, with no gas used on site, while the scheme will also benefit from the proximity to public transport further reducing its environmental impact.
John Gatley, chief executive, McLaren Property, said: 'Student accommodation is attracting strong investor appetite, amidst what is otherwise a challenging funding backdrop, and we anticipate this will continue due to the resilience of our sector.'
Cushman & Wakefield advised Barings while CBRE acted on behalf of McLaren.
