New development alongside Mulbury to deliver 161 apartments
Europa Capital, the pan-European real estate investment manager,
announces that it has entered into a forward funding agreement to acquire a new
build-to-rent (“BTR”) residential development, in Manchester’s New Cross
district, from experienced housing developer Mulbury. Europa Capital has made
the acquisition on behalf of its latest value add fund, Europa Fund VI, as it
continues to expand its vertically integrated build-to-rent platform in the UK.
The 12-storey building, which is located on Bendix Street, will
comprise a total of 161 build-to-rent units, including a mix of one-, two- and
three-bedroom apartments at mid-market rents, across c. 138,300 sq ft of space,
as well as 1,700 sq ft of ground floor commercial space. Featuring extensive
communal spaces, including a large roof terrace, and 166 cycle spaces, the accommodation
will offer residents excellent amenities. GMI Construction has been appointed
as main contractor with work starting in October and due to complete by the end
of 2023.
The New Cross district of Manchester is an historic area of the
city which is undergoing significant regeneration whilst retaining its former
Victorian industrial feel. The area has been designated by Manchester Council
as a residential extension of the Northern Quarter, which is known for its
vibrant atmosphere and cultural attractions.
This is the second residential scheme to be delivered by Europa
Capital in Manchester since the successful launch of the Anaconda Cut, a
44-storey residential building offering 350 rental apartments, in 2019. As one
of the early institutional movers in the residential market, Europa Capital has
a 10 year track record in the living sector, having invested more than £1
billion to deliver over 10,500 beds across the living sector in the UK, Spain,
Denmark and Germany.
In June 2021, Europa Capital also made its first investment in the
senior living space, developing a for rent senior housing development in Helsingør,
Denmark, in line with its strategy of expanding into the broader living sector.
Founded in 2010, Mulbury is an award-winning developer based in
Manchester and specialising in a range of housing products. Working closely
with registered housing providers, landowners, investors and other property
professionals, the company has delivered over 2,000 new homes.
Jason Oram, Partner, Fund Manager at Europa Capital, added: “Against the backdrop of
a significant shortage of housing in the UK, the build-to-rent sector has
proven its resilience during the pandemic, as well as from wider structural
change. During times of high inflation, the asset class has historically been a
very good hedge and for these reasons institutional investors are increasing
their capital allocations to the sector.”
Hugo Black, Partner at Europa Capital, commented: “We continue to believe
in the attractiveness of residential urban locations, particularly with young
professionals, who want to remain close to city centre areas. This development
is in an exciting part of Manchester, which is experiencing strong levels of
demand, whilst building on our existing presence in the city, as well as our UK
wide residential platform.”
Martin Bury, Co-Founder and Director at Mulbury, added: “This deal marks another
significant milestone in the regeneration of New Cross and will contribute
hugely to the area’s ongoing transformation into a vibrant and thriving part of
the city. We’re thrilled that Europa Capital share our vision for the site
and our ambition to provide exciting city living opportunities that help
Manchester deliver on its homes strategy.”
