Bearings PRS Scheme in Manchester18/12/2018
Barings Real Estate has made its second investment in the UK private rented sector (PRS) with the acquisition of a site in Manchester to build a 280 unit apartment complex.
Without doubt we have seen a cooling off from PRS Funds in Manchester over the past two years, perhaps attributed to developers choosing higher sales receipts from individual UK and Overseas Investors. The news of this scheme, released in November 2018, confirms the Manchester Rental Market is still regarded as a national rental and property hotspot.
The GBP57 million development is a joint venture with Glenbrook, a property development and investment company specialising in PRS and based in Manchester. The investment is on behalf of a North American institutional investor.
Upon completion, the property in Cornbrook will consist of 280 apartments across two 14-storey buildings. The property has been purpose designed for the rental market, and will include a resident’s lounge, garden area, gym and yoga studio all located on the top-floor of the development. A convenience retail store will be located on the ground floor. The property is adjacent to the Cornbrook Metrolink Station, one of the busiest metro stations in the city, with direct access to Manchester City Centre, MediaCity UK, Manchester Airport, and the Etihad Campus. Construction commenced in August 2018 with completion expected for October 2020.
The PRS market in the UK is rapidly emerging as an institutional asset class and addresses the structural imbalances created by decades of undersupply in residential housing, declining average household sizes, and a significant increase in the number of people renting. This is the second investment made by Barings in the UK PRS market this year and follows the acquisition of Liverpool’s landmark property, The Keel, in early October.
Darren Hutchinson, Barings Managing Director and Head of UK Real Estate Transactions, says: “Manchester is a thriving city with a diverse and growing economy which presents interesting investment opportunities. The property in Cornbrook is now our second significant development in the City following Landmark, an 180,000 sq ft office scheme in St Peter’s Square, which is due for completion in Q3 2019.”