Work to construct over 250 apartments in Manchester's Northern Quarter is set to start after a £75.6m deal was agreed.
Singapore property giant City Developments Limited (CDL) has agreed to forward fund the 1NQ project after acquiring the scheme, which will be located along Tariff Street and Port Street. Full planning permission was granted in October and 261 flats are now expected to be completed in 2026.
The project started as a joint venture between Marco Living and Axis Real Estate and had originally sought for 267 apartments to be created when the plans were first revealed at the end of 2022. The project will see two 10 and 12-storey apartment blocks constructed with a mix of one, two and three-bedroom flats as well as two commercial units on the ground floor.
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Sherman Kwek, CDL group chief executive, said: "Despite an uncertain macroeconomic environment, our PRS assets have shown resilience and strong growth potential. We have continued to scale up our global living sector portfolio to drive growth in our recurring income.
"This year, our group's global PRS portfolio has grown by almost 70% to 4,489 operational and pipeline units in the 海角视频, Japan, Australia and the US, up from 2,640 units last year. 1NQ marks CDL's first 海角视频 PRS acquisition under a forward-funding arrangement, which enables us to secure our investment at a fixed cost, manage our cash flows over the development period and benefit from potential capital appreciation."
Nick Mullins from Axis RE added: "Manchester City Council's clarity of its strategic approach and direction within this area of the city centre will now enable us to bring 1NQ to life in what continues to be a particularly challenging economic environment. We are excited to be working with CDL and ULG to deliver the project and this deal is testimony to what we can achieve as a company and is another step forward in the long-term regeneration of this part of the Northern Quarter. Both parties share our vision for the development and the delivery of high quality, sustainable and energy-efficient apartments."
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United Living New Homes, a subsidiary of United Living Group, will be the main contractor for the project. United Living New Homes is currently delivering the 296-unit second phase of Outwood Wharf in Salford.
Caroline Lewis, managing director of United Living New Homes, said: "We are delighted to have been awarded this contract to construct 261 build to rent homes. United Living strives to create sustainable housing solutions with a positive impact and this development will help address the housing shortage in Manchester. We look forward to working with Axis RE and CDL and delivering a project which supports the ongoing regeneration of the Northern Quarter."
The consultants involved with the project include Primas, JMW, Ashurst, Leach Rhodes Walker, TPM, Fairhurst, Crookes Walker, Avison Young, Quantem, Asset Building Control and Jensen Hughes. CBRE acted for Axis as funding agent.