Europa Capital, the pan-European real estate investment manager, has entered into a forward funding agreement to acquire a new build-to-rent (BTR) residential development, in Manchester’s New Cross district, from housing developer Mulbury.
Financial details were not disclosed.
Europa Capital made the acquisition on behalf of its latest value add fund, Europa Fund VI, as it continues to expand its vertically integrated build-to-rent platform in the UK.
The 12-storey building, which is located on Bendix Street, will comprise 161 build-to-rent units, including a mix of one-, two- and three-bedroom apartments at mid-market rents, across c. 138,300 ft2 (12,850 m2) of space, as well as 1,700 ft2 of ground floor commercial space.
GMI Construction has been appointed as main contractor with work starting in October and due to complete by the end of 2023.
This will be the second residential scheme to be delivered by Europa Capital in Manchester since the successful launch of the Anaconda Cut, a 44-storey residential building offering 350 rental apartments, in 2019.
In June 2021, Europa Capital also made its first investment in the senior living space, developing a for rent senior housing development in Helsingør, Denmark, in line with its strategy of expanding into the broader living sector.
Jason Oram, partner, fund manager at Europa Capital, added: 'Against the backdrop of a significant shortage of housing in the UK, the build-to-rent sector has proven its resilience during the pandemic, as well as from wider structural change.
'During times of high inflation, the asset class has historically been a very good hedge and for these reasons institutional investors are increasing their capital allocations to the sector.'
Europa Capital has a 10 year track record in the living sector, having invested more than £1 bn to deliver over 10,500 beds across the living sector in the UK, Spain, Denmark and Germany.
