New Yorkers Still Hot For Manchester PRS
New York-headquartered AIG Global Real Estate completed the £65M funding of a new private rented sector residential scheme opposite Manchester's giant Wing Yip supermarket, Oldham Road.
AIG acquired the site for the 274-unit build-to-rent scheme at New Cross from Balfour Beatty, Place North West reports. The move comes soon after European investor Tristan Capital Partners cast doubt on the appeal of Manchester's BTR sector.
Last month Tristan Capital Partners Senior Partner Cameron Spry told Bisnow he has an appetite for more office investment in Manchester — but the fast-moving BTR residential sector does not appeal. The large number of new BTR skyscraper plans — hailed by some as a sign of the market's confidence — are among the things putting Tristan off investing.
The cool view is not shared by other investors, as groups including M&G keep dropping funds into the space.
According to Deloitte's 2018 Manchester Crane Survey, 11,135 residential units are under construction in the city centre, up 4,172 on 2017. Deloitte said 32 new schemes started construction in the last 12 months.
New Cross and Great Ducie Street are being prepared as major BTR growth areas as part of Manchester City Council's residential strategy for the city's Northern Gateway. The council's partnership with Hong Kong-based Far East Consortium is also set to deliver new housing in the 350-acre development zone.
Construction work on the 10-storey AIG-funded block is due for completion in 2020.