Europa Capital Acquires Bendix Street Development in Manchester
Europa Capital, the pan-European real estate investment manager, announces that it has entered into a forward funding agreement to acquire a new build-to-rent (“BTR”) residential development, in Manchester’s New Cross district, from experienced housing developer Mulbury. Europa Capital has made the acquisition on behalf of its latest value add fund, Europa Fund VI, as it continues to expand its vertically integrated build-to-rent platform in the UK.
The 12-storey building, which is located on Bendix Street, will comprise a total of 161 build-to-rent units, including a mix of one-, two- and three-bedroom apartments at mid-market rents, across c. 138,300 sq ft of space, as well as 1,700 sq ft of ground floor commercial space. Featuring extensive communal spaces, including a large roof terrace, and 166 cycle spaces, the accommodation will offer residents excellent amenities. GMI Construction has been appointed as main contractor with work starting in October and due to complete by the end of 2023.
The New Cross district of Manchester is an historic area of the city which is undergoing significant regeneration whilst retaining its former Victorian industrial feel. The area has been designated by Manchester Council as a residential extension of the Northern Quarter, which is known for its vibrant atmosphere and cultural attractions.
This is the second residential scheme to be delivered by Europa Capital in Manchester since the successful launch of the Anaconda Cut, a 44-storey residential building offering 350 rental apartments, in 2019. As one of the early institutional movers in the residential market, Europa Capital has a 10 year track record in the living sector, having invested more than £1 billion to deliver over 10,500 beds across the living sector in the UK, Spain, Denmark and Germany.
In June 2021, Europa Capital also made its first investment in the senior living space, developing a for rent senior housing development in Helsingør, Denmark, in line with its strategy of expanding into the broader living sector.
Founded in 2010, Mulbury is an award-winning developer based in Manchester and specialising in a range of housing products. Working closely with registered housing providers, landowners, investors and other property professionals, the company has delivered over 2,000 new homes.
Jason Oram, Partner, Fund Manager at Europa Capital, said: “Against the backdrop of a significant shortage of housing in the UK, the build-to-rent sector has proven its resilience during the pandemic, as well as from wider structural change. During times of high inflation, the asset class has historically been a very good hedge and for these reasons institutional investors are increasing their capital allocations to the sector.”