Invesco Real Estate (IRE) has spent £45.4 mln (€51.3 mln) on 263 residential units under development in Manchester in the latest addition to its growing UK Build-to-Rent programme.
The real estate investment manager agreed to acquire the Outwood Wharf scheme in a forward-funding transaction.
The development is located in Salford in Greater Manchester, and the deal marks IRE's first Build-to-Rent (BtR) project outside of London and the South East of England.
Outwood Wharf will provide the 263 purpose-built units within three self-contained blocks, ranging from seven to 17 storeys. The development is located about a 10-minute walk from Manchester city centre and forms part of the ongoing regeneration programme taking place in Salford. The residential development is scheduled for delivery in March 2019.
'Our BtR programme is focused on London, the South East as well as the main UK regional cities, so we are delighted to announce our first regional project, said John German, senior director of residential investments at IRE.
With this investment, the BtR programme has 1,300 units under management with what IRE describes as a 'strong pipeline' in due diligence. 'We have an experienced, dedicated residential team in place who are fully focused on the expansion of our BtR programme due to the increasing appetite we are seeing from a variety of global investors currently providing us significant capital to deploy,' German said.
IRE is working on the Manchester project with Endeavour and Lagan Construction Group, while our onsite property manager will be US-based residential property specialist Greystar.
Mark Allnutt, managing director and business leader for Greystar, said: 'Our partnership with Invesco in Manchester capitalises on the demand for professionally managed residential rental accommodation. We enjoy a longstanding relationship in the US and we're thrilled Invesco has decided to grow their UK business with us.
'We have built a strong operational platform dedicated to delivering an exceptional customer experience, with over 32,000 apartments comprising both student accommodation and multifamily housing now under management in the UK. We are delighted that Invesco has chosen Greystar to manage this fantastic development in the North West, Allnutt added.
Since entering the UK market in 2013, Greystar has built up a property portfolio worth £3.5 bn, representing over 32,000 units and comprising both student housing and multifamily rental accommodation. The company is an investor and operator of student brand Chapter and a shareholder in student accommodation provider iQ.
Greystarmanaging over 425,000 units in 140 markets globally, with an aggregate estimated value of $80 bn.
Residential
IRE's latest European House View report states that the residential sector is expected to continue to generate attractive rental growth as demand for rental properties is strong amongst millennials, and is expected to outstrip supply.
Development of purpose-built for rent units in youthful cities that attract live-work-play environments is key to executing a BtR strategy in the UK today, the report says.
IRE is one of the world’s largest and most experienced investors in the residential sector globally, having invested around £14.5 bn over more than 30 years.
