Balfour Beatty Investments, the international infrastructure investor, and AIG Global Real Estate, part of insurer AIG, have announced financial close for a major build-to-rent development, ‘The Lancastrian’, in the New Cross area of Manchester city centre with a Gross Development Value of c£65 million.
This milestone coincides with the start of construction of the development which will consist of 274 one, two and three-bedroom rental apartments across two buildings positioned around a landscaped courtyard. Residents will benefit from a wide range of amenities including concierge facilities, residents’ lounges, a gym, and two roof-top terraces.
The Lancastrian is within a five-minute walk of the vibrant and creative Northern Quarter district which offers a range of independent designers, bars and restaurants. It is also within easy reach of Piccadilly Gardens, Market Street and Shudehill interchange for connections to the extensive bus and metrolink service as well as Piccadilly and Victoria Train Stations.
Balfour Beatty Investments acquired the site in January 2016 and secured full planning consent thereafter. The financial close of the deal involved the transfer of the land ownership in full to AIG.
Construction of the development is being carried out by Balfour Beatty with works now underway and residents expected to be moving in during the summer of 2020.
David Swarbrick, Managing Director of UK Investments for Balfour Beatty Investments said, “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.”
Colliers International advised Balfour Beatty from the early stages of its ownership and was principally involved in identifying a suitable funding partner and assisting in the financial structuring.
Toby Nicholson, Head of Build to Rent at Colliers International, added: “This is the first Build-to-Rent (BTR) deal for Balfour Beatty and the first scheme in the emerging area of New Cross in Manchester to be designed through planning purposely for BTR. New Cross has been identified by Manchester City Council as a strategic priority area – adjacent to Northern Quarter, Ancoats and NOMA, and is part of a Northern Gateway. Furthermore, Balfour Beatty designed the scheme with the tenant in mind, which will also be efficient to operate enhancing the future rental return.”