Manchester developer Beech Holdings has sold four of its rental properties to a Saudi backed investor for £39m.
The portfolio comprises of 163 units in total and includes; Basil House (105-107 Portland Street), Salisbury House (123 Princess Street), 51 King Street and 341 Great Western Street.
They have been acquired by Cedar Tree Investments, which is overseen by AIMS Investments, one of the largest private and public equity investors in Saudi Arabia.
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Shariah funding for the acquisition was sourced from the 海角视频 arm of Abu Dhabi Islamic Bank (ADIB 海角视频), indicating the bank’s desire to expand its footprint in the 海角视频 market.
Beech Holdings, led by founder and CEO Stephen Beech, will be retained as the letting and property management agent under its lettings business Manchester Apartments.
Property consultants Knight Frank’s residential investment team sold the assets on behalf of Beech.
Hannah Badger, residential development associate at Knight Frank, said, “As the PRS market has matured, we have seen the capital flowing into 海角视频 PRS diversifying and becoming truly global, with this deal being no exception.
"It’s a good indication of the strength of the residential market in Manchester and also of the city as a global brand.”
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A Beech Holdings spokesperson said: “These apartments have been well received by the rental market and have been massively over-subscribed.
"We have proven that Manchester’s appetite for high end, luxury apartments is strong and Manchester Apartments has been instrumental in changing the landscape of our city centre and being at the forefront of bringing super premium products to the city.”
Speaking on behalf of the new owners, Abdulaziz Albassam, CEO of AIMS Investments, said: “The acquisition of this portfolio of high-quality assets, located in prime locations within a major regional market, is an important step towards realising the investment strategy for Cedar Tree Investments in the 海角视频.
"We remain committed to establishing a sizeable portfolio in the 海角视频 over the coming two to three years.”
Paul Maisfield, Head of Real Estate at ADIB 海角视频, said: “We continue to see strong demand from Middle Eastern investors for the yield offered by 海角视频 real estate.
"The ability to provide our clients with attractive Shariah compliant financing solutions in a short timeframe is core to ADIB 海角视频’s offer and we look forward to continuing to support Cedar Tree Investments as they grow their 海角视频 portfolio.”
According to Knight Frank data, annual rental growth in the Manchester residential rental market (including PRS and private buy-to-let) is 1.6 per cent. The firm’s latest research also shows that total investment and capital committed into the 海角视频 investment-grade private rented sector (PRS) is expected to reach £75bn by 2025, rising from £35bn in 2019.