Legal & General acquires Manchester Build to Rent tower

Legal & General has purchased “North Tower” in Deansgate Square, Manchester, on behalf of its two funds, UK Property Fund and Managed Fund.

North Tower provides 276 luxury apartments of one-, two- and three-bedrooms, across 37 storeys.

Residents have access to a two-storey gym, 20m swimming pool, sauna, steam room, fitness studios and an indoor sports hall.

Michael Barrie, director of real estate fund management at LGIM Real Assets, said: “This acquisition represents the coming together of two of LGIM Real Assets’ largest funds as we continue to diversify our exposure to alternative sectors.

“Alongside hotels, self-storage and student accommodation, BTR will continue to be a preferred subsector, giving us real-time access to occupational markets with a robust growth in rental income.”

North Tower sits at the heart of the Deansgate Square development, a cluster of four residential towers with amenity, commercial and public realm spaces.

The building was purchased from the developer, Renaker, one of the UK’s leading property developers with a proven track record in design, build and delivery. CBRE advised on the transaction.

North Tower represents Legal & General’s second build to rent acquisition in Deansgate Square with the adjacent West Tower purchased by its build to rent fund in April 2019.

West Tower is currently around 72% let.

Tom Sinclair, residential investment director at CBRE, said: “CBRE is delighted to have advised Legal & General on the acquisition of the North Tower at Deansgate Square.

“The North Tower marks CBRE’s second transaction with L&G at Deansgate Square and demonstrates continued confidence in Manchester’s residential market following the strong occupier demand experienced at the West Tower.

“On completion, the North Tower will provide exceptional residential accommodation, providing more renters with the opportunity to experience life at this desirable residential address.”