Mulbury has entered a forward funding deal with Europa Capital, the pan-European real estate investment manager, for its 161-apartment scheme at Bendix Street in Manchester’s New Cross district.
Europa Capital has 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 comprises 161 build-to-rent units, including a mix of one, two and three-bedroom apartments at mid-market rents, across c. 138,300 sq ft of space, as well as 1,700 sq ft of ground floor commercial space.
Featuring extensive communal spaces, including a large roof terrace, and 166 cycle spaces, the accommodation will offer residents excellent amenities. GMI Construction has been appointed as main contractor with work starting in October and due to complete by the end of 2023.
Hugo Black, partner at Europa Capital, commented: “We continue to believe in the attractiveness of residential urban locations, particularly with young professionals, who want to remain close to city centre areas. This development is in an exciting part of Manchester, which is experiencing strong levels of demand, whilst building on our existing presence in the city, as well as our UK wide residential platform.”
Martin Bury, co-founder and director at Mulbury, added: “This deal marks another significant milestone in the regeneration of New Cross and will contribute hugely to the area’s ongoing transformation into a vibrant and thriving part of the city.
“We’re thrilled that Europa Capital share our vision for the site and our ambition to provide exciting city living opportunities that help Manchester deliver on its homes strategy.”
Bendix Street is the second residential scheme to be delivered by Europa Capital in Manchester following the successful launch of the Anaconda Cut, a 44-storey residential building offering 350 rental apartments, in 2019.
As one of the early institutional movers in the residential market, Europa Capital has a 10-year track record in the living sector, having invested more than £1billion to deliver over 10,500 beds across the living sector in the UK, Spain, Denmark and Germany.
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.”
The Bendix Street development is one of three schemes in New Cross that Mulbury first unveiled in March 2020 and which gained planning consent in December 2020. Mulbury signed a deal with Cheyne Capital in January 2021 to develop 144 apartments at Oldham Road which is now on site.
A smaller development of 73 apartments on the site of the former Goulden Street police, fire and ambulance station is also being delivered. All three developments were designed by Tim Groom Architects.