Pension Insurance Corporation (PIC) has agreed to forward fund £130 mln (€143 mln) of Muse Developments’ 520-appartment build-to-rent development in Manchester, UK.
The two-building development beside Manchester’s Victoria station includes more than 6,000 sq ft (557 m2) of commercial space and 102 car parking spaces as well as amenities including a gym, cycle storage and roof garden.
Construction firm Vinci is due to start on the site imminently, with completion expected in 2024.
Tracy Blackwell, CEO of Pension Insurance Corporation, said: ‘With a portfolio in excess of £40 bn backing the guaranteed pensions of our 230,000 policyholders, PIC is a significant and purposeful investor in the UK’s social infrastructure. I am delighted that we have now secured our first Build to Rent project, a significant step as PIC continues to grow. This investment, which will have a positive effect on the local economy, will provide long-term, secure cashflows to back our pension payments in the decades ahead.’
David Burkinshaw, development director at Muse Developments, added: ‘Reaching completion on the forward funding deal with PIC is a significant milestone for all partners, as we bring forward this innovative gateway development. This deal highlights investor confidence in our long-term vision to transform and repurpose an underutilised site in Manchester city centre.’
The wider development, which is also being part funded by Manchester City Council and Homes England through the Housing Infrastructure Fund, benefits from planning permission for a second phase of Grade A office accommodation.
Colliers advised on the deal.
