Apache Capital Partners Fund 466 Private Rental Sector Homes in Manchester

Apache Capital Partners Fund 466 Private Rental Sector Homes in Manchester

Property investment management firm, Apache Capital Partners, has teamed with Moda Living to secure senior debt financing of £85m, secured on the Angel Gardens development in Manchester city centre. The development will create 466 private rental sector homes in Manchester.

Deutsche Pfandbriefbank has agreed to a four-year term funding contract for the construction period of the development, which will convert to an investment loan for the rest of the term. The development is set to cost a total of £153m. Completion of the project is set for 2020.

The premium private rental sector apartments will stand 34 storeys tall, making it one of the tallest residential towers built outside London since the 2008 crash. Covering 520,000 sq ft, the Angel Gardens development forms part of the NOMA redevelopment project, regenerating a 20-acre site opposite Manchester’s Victoria station.

Angel Gardens and Beyond…

Angel Gardens, however, is not the only private rental sector delivered by the joint venture between Apache and Moda Living. It will be the first of many private rental sector developments created by the venture. In the pipeline is a total of 5,000 new private rental sector homes across eight cities across the UK, including London and the south east.

Johnny Caddick, managing director at Moda Living, believes the project will “set new expectations for rental housing in Manchester and throughout the UK”.

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Private Rental Sector Homes in Manchester: On Trend

Investing in property in Manchester is becoming a real trend for high profile investors. And the private rental sector is hot property, considering the vast increase in those seeking rental accommodation. It is mainly the young professionals, who are flocking to the city for its huge career opportunities, that make up the bulk of renters in the city. Angel Gardens will be ideally placed for the many employed in the NOMA area, as well as those commuting into Manchester Victoria.

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Why Foreign and Domestic Investors Love Manchester

It’s no secret that the Manchester property market is the centre of attention for property investors both here and abroad. In fact, it’s all across the news. Perhaps that’s part of what’s driving this attention: more and more investors are wising up to the possibility of great ROI in the heart of the Northern Powerhouse.

Money From Abroad Fuels Manchester Property Market

There is no signs that the flood of cash flowing into the Manchester property market, nor the city’s economy at large, is likely to slow any time soon. Manchester is now the largest economic area outside London: £56bn of gross value added. Germany alone is set to spend £200m in the city before the year is out, fuelled in no small part by the drop in the value of the pound against the euro.

Nonetheless, it’s not just Brexit that’s got Germany investing in Manchester. The Amazon distribution hub, a 280,000 square foot are at Manchester City Airport, was purchased for £35m by German investors Hansainvest, for instance.

So, why Manchester? Well, there’s all the rabid regeneration that’s transforming the city in so many ways. But it’s also the state of London’s property market.

Manchester’s Winning Property Prices

Knight Frank have recently released research findings demonstrating that London’s property prices are now so stupendously high, they’re starting to hit an affordability ceiling that threatens to smother the capital’s market altogether. As such, investors are looking elsewhere, and Manchester is where they’re feasting their eyes.

It’s a city that’s experiencing the strongest house price growth of any city in the UK. It’s been voted the most liveable city in the UK by the Economist Intelligence Unit’s Global Liveability Scale. Its student population is the largest in the UK, with student accommodating offering excellent ROI.

Student Property in Manchester

Student property is one of the investments tipped to be unshaken by Brexit. Demand for purpose-built units for this demographic are in chronic undersupply, meaning any rental development of this kind will be snapped up without hesitation by student tenants. The King’s Court development on Hyde Road, for example, offers a huge 8% net income guaranteed over five years: no development risk (as it’s already developed), and immediate income up for grabs.

The Manchester Property Market Rules, OK?

We’ve covered the subject of the Manchester property market boom, and corresponding regeneration, almost weekly over the last few months. And believe us, it’s not just because of our vested interest in the city: this is simply news that’s completely dominating the property investment space.

Compounding evidence that Manchester is pretty much the best place to invest in the UK right now is everywhere, with property experts across the board extolling the virtues of the Northern Powerhouse, and its strong potential for excellent returns for those willing to place their money here.

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