Specialist real estate lender Maslow Capital has provided a £50 million two-stage facility to Linear Living for a residential development at Lord Street in Manchester.
The financing covers both pre-gateway bridging finance and a subsequent development facility for One Lord Street, a planned 23-storey building comprising 251 apartments and townhouses. The site is located at a gateway into Manchester city centre.
Bridge-to-development structure
The facility was structured to provide bridging and development finance under a single framework, with both phases agreed before gateway approval. This approach aims to reduce duplicate due diligence and legal work whilst providing cost certainty during the early stages of the development cycle.
The scheme forms part of the Green Quarter regeneration area and sits adjacent to the Strangeways and Cambridge Strategic Regeneration Framework area, a joint initiative between Manchester City Council and Salford City Council.
This is the second transaction between Maslow Capital and Linear Living, following an £18 million financing arrangement for the Trafford Gardens development in Manchester.
Market context
Sky Mapson, senior director of origination at Maslow Capital, said: “Agreeing both phases from the outset, pre-gateway, gives sponsors a level of certainty that’s hard to achieve in today’s market.”
Rachael Gordon, head of deal execution (UK and Europe) at Maslow Capital, noted that “Manchester continues to attract sustained demand and institutional investment, with regeneration frameworks helping to shape the next phase of city-centre growth.”
Stephen Holmes, chief executive of Linear Living, stated that securing a joined-up facility was central to the project’s progress, providing “certainty and keeps the project moving forward.”
Outlook
Manchester’s residential development pipeline continues to expand, with regeneration frameworks attracting institutional interest. Bridge-to-development facilities that combine acquisition and construction finance are becoming more common across UK regional cities as developers seek to reduce transaction costs and streamline funding arrangements.
