A Manchester developer has been backed by an international bank with a funding arrangement of over £14m.
Bank of London and The Middle East (BLME) has extended its first facility in the city to residential developer, Beech Holdings.
The bank’s initial arrangement of £14,162,500 will fund the construction of 80 units at Piccadilly Warehouse, Bloom Street, 18 units on Duke Street and a further 25 apartments at Brooklands House, Media City, with a combined GDV of £38m.
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It is the first time the bank has dealt with a Manchester developer, in a move it said "demonstrates the interest and excitement in the city's real estate market".
Stephen Beech, CEO of Beech Holdings, said: “I’m especially pleased about this relationship with BLME, it has become possible with the support of our investment partners, AIMS Investments, that has opened doors to institutions who may have never considered projects in Manchester.
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“As with all of our projects, sustainability is key and a focus on regeneration is paramount. We will continue to use technology and long-lasting materials in all of our projects to create low-carbon, energy efficient homes for young professionals and students in Manchester and further afield.”
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The projects to be funded include the last two neighbouring, unconverted Victorian warehouses in the city centre, on Bloom Street and Minshull Street - to be named Piccadilly Warehouse.
Plans to convert the two neighbouring properties into 80 one and two-bedroom, low carbon apartments are well under way with restoration of the adjoining cobbled street.
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Sam Dickinson from BLME, said: “The Manchester residential real estate market is very exciting right now.
"Beech Holdings has demonstrated that with exceptional quality, design and build for projects, they can generate attractive yields and substantial capital appreciation for investors. Manchester can clearly compete with London.
"We’re looking at a long term relationship with Beech Holdings and Manchester and are looking forward to seeing the results.”
He continued: “I strongly believe that regional cities are able to regenerate and grow the accommodation supply required to begin the levelling up agenda that is needed.
"But, I am steadfast in my belief that this funding needs to come from new sources, international investors and banks like BLME – ones that are open to new opportunities and future growth and are not blinded by London’s real estate market.”