Impact real estate investor Cheyne Capital and North West housing developer Mulbury have announced a £32 mln (€36 mln) forward funding deal 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 and will also comprise work, entertainment and relaxation spaces, ground floor retail facilities, and a 3,000 ft2 (280 m2) roof terrace providing outside space for residents.
The investment comes from Cheyne’s second Impact Real Estate Fund and includes a social covenant to ensure that more than a third (35%) of the homes will be allocated to local keyworkers, such as nurses, teachers and emergency services workers, at discounted rents.
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 ensuring 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.'
The 0.13-hectare development site sits within the New Cross Neighbourhood Development Framework, a key gateway into Manchester City Centre from the north.
Mulbury hopes to start demolition and remediation work on the site in February 2021. It is expected that the building will be completed by summer 2023. Mulbury has also gained planning consent for two further residential-led developments in New Cross – one in Goulden Street and the other in Bendix Street.
Martin Bury, co-founder and director at Mulbury, added: '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.'
