M&G enters private rented sector in NW England

M&G is investing in the scheme via its UK residential property fund, launched in mid-2013 for UK and international investors, led by head of residential investment Alex Greaves.

Comprising 135 apartments at 97-105 Port Street in Manchester's Northern Quarter, the properties are being developed by Mulbury and have been designed by Tim Groom Architects.

'This investment marks our entry into the strong regional market in the North West, further extending our significant engagement in the UK private rented sector, which includes partnerships and deals with house builders Crest Nicholson and Telford Homes,' said Greaves.

'This takes M&G's residential property commitments to around £545 mln of committed capital on behalf of UK and international investors, including pension funds, insurance companies and local authorities. We are confident that the build-to-rent sector offers long-term growth potential with considerable diversification benefits for investors,' Greaves added.

Communal facilities
Work on the scheme, which began in April 2016, should be completed by summer 2018. Mulbury said that the homes are mainly one and two bedroom apartments.

The development will also include communal roof-top gardens and balconies for all apartments, a reception and 557 m2 of commercial office space at ground level, within a 10 minute walk of Manchester Piccadilly Station and Manchester Arndale shopping centre.

'We are thrilled to have secured the backing of such a well-established and prestigious investment house as M&G for this particular scheme. It was clear as soon as we began talking that they had the appetite and expertise to make this project a real success,' said James Alderson, head of Mulbury City, the firm's urban build-to-rent division.

Mulbury was advised on its deal with M&G by the real estate team at law firm Fieldfisher, led by James Flynn.

Legal advice on the land purchase was provided by the real estate team at Primas Law, led by Simon Baxter.