Development finance provider Maslow Capital has provided a £123 mln (€140 mln) facility to fund the construction by developer Renaker of two residential towers in Manchester.
The project, with an estimated gross development value in excess of £230 mln, is designed to meet the strong demand for rental homes in the northern UK city, which has one of the highest proportions of young workers (aged 18-34) in the country.
The development will consist of two towers - the Crown Street Victoria and Elizabeth towers - reaching 21 and 52 storeys respectively, providing a combined total of 664 residential units.
The loan marks Maslow Capital’s eleventh facility in Manchester, where the strong flow of university graduates deciding to settle in the city is driving up demand for residential space.
Commenting on the supply of residential units in Manchester, Maslow deal originator Matt Pigram said: ‘Despite a large increase in supply over the past few years, our market research shows an ongoing shortfall of supply of residential dwellings in the Manchester region. As a lender we are delighted to see a residential development of this scale under construction by a proven developer that is fully committed to meeting the housing demand in the city.’
James Henry, who led the structuring of the loan facility, added: ‘More students are residing in Manchester post-graduation than ever before, leading to an annual increase in the size of the working population that need high quality, well located accommodation. As a lender with close ties to Manchester, we are extremely pleased to be deploying an additional £123 mln into such an ambitious regeneration project.’