Legal & General has forward funded a development of 90 apartments for rent in central Manchester. The 10 storey block will be part of the New Bailey mixed use development, which English Cities Fund and Muse Developments is promoting on a site behind Spinningfields.
L&G won the £16 million project after open market bidding. The site already has planning permission, though some design revisions are now likely to make it better suited to long term rental block management. The scheme designed by architects AHR could start on site this autumn, with the potential for tenants to be moving in to the mix of one, two and three bed apartments before the end of 2016.
“The renaissance of Salford is one of the best success stories in UK urban regeneration,” said L&G’s director of direct investments, Laura Mason. “Situated in a waterside location, within walking distance of Manchester Piccadilly and 200m from Salford Central, we have the ability to provide a new class of rental accommodation, based off fair value rents but with a higher quality offer, and greater tenant service and flexibility.”
This is L&G’s second private rented sector investment, as the company recently took on a regeneration site in Walthamstow, east London where permission has been granted for more than 300 flats. The investor has said it will put up to £1 billion into rental homes over the long term, and is seeking an investment partner “with like-minded international capital” to grow what it expects to be a significant portfolio of private rented homes across the UK.