Funding deal ensures Manchester PRS scheme proceeds
Construction firm Balfour Beatty has agreed a £65 million funding deal with AIG Global Real Estate to ensure a new two-block private rental scheme in Manchester proceeds.
The development, known as the Lancastrian, is to be built just north-east of the city centre in New Cross, on a site facing out onto Oldham Road.
It will feature 274 one, two and three-bedroom apartments available on a rented basis, which will be housed in two buildings. The taller structure will be ten storeys high and the other between six and eight storeys.
The development will include two rooftop terraces, residents' lounges, a courtyard and 3,700 sq ft of retail space facing out onto Oldham Road.
Balfour acquired the site in early 2016 and gained planning permission later that year. Under the terms of the agreement, ownership of the location will now pass to AIG.
Work has already begun on clearing the site, which was occupied by a car dealership, and the new apartments will be ready for residents to move into in 2020.
Managing director of UK investments for Balfour Beatty Investments David Swarbrick remarked: "We are delighted to be working with AIG Global Real Estate on the delivery of this exciting development.
"The Lancastrian will support the regeneration of the area, providing high class accommodation for residents."
The development is the latest of many in the PRS sector in and around the centre of Manchester. The residential market in the heart of the city continues to boom, as evidenced by the plethora of cranes and the sight of two of the four Owen Street skyscraper clusters rising up on the skyline as they near completion.
However, much of the development is now taking place around the periphery of the city centre and New Cross is one such area, being located close to areas such as NOMA and New Islington.
Indeed, the corridor to the north-east of the city centre is an area where plenty of new developments are planned, based around the parallel highways of Oldham and Rochdale Roads.
The city council recently unveiled a partnership with property developer Far East Consortium, which will see 15,000 new homes being built in the area.