Barings has agreed the circa £65m forward funding of a purpose-built student accommodation (PBSA) asset in Manchester with McLaren Property.
McLaren has already secured planning permission for the St Gabriel’s Hall development on Oxford Place, which will see the construction of two new accommodation blocks and the part-refurbishment of two heritage buildings delivering 319 students rooms.
Completion is expected in summer 2025, enabling the first residents to move in in time for the start of the 2025/26 academic year.
Ben Pile, head of European residential investment and asset management at Barings, said: “St Gabriel’s Hall will be the fourth PBSA scheme to be delivered by Barings in the UK on behalf of our capital partners – and the second in Manchester. Given the continuing supply-demand imbalance for purpose-built student accommodation in Manchester, St Gabriel’s Hall will provide an attractive proposition to students who will find the mix of quality specification, extensive amenity spaces and attractive landscaped grounds, proximity to world-class institutions, and excellent transport links very appealing. We are delighted to be partnering with McLaren Property, who are a well regarded developer in the PBSA market.”
Darren Hutchinson, managing director and head of UK real estate transactions at Barings, added: “The sector has proven very resilient over the past few years which is why we see a strong opportunity to create modern, high quality stock that meets the aspirations of students against a background of constrained supply in the UK. Aside from PBSA as an asset class, we are very interested in further widening our exposure to BTR across the country in major cities.”
John Gatley, chief executive of McLaren Property, said: “Student accommodation is attracting strong investor appetite, amidst what is otherwise a challenging funding backdrop, and we anticipate this will continue due to the resilience of our sector.”
David Atherton, divisional managing director at McLaren Property, added: “This partnership is a milestone moment for the project and secures the development finance required to bring this exciting scheme to fruition. McLaren Property and Barings have a shared vision to breathe new life into these redundant historic buildings and help set the highest standards of accommodation within Manchester. With enabling works already underway and the main works set to commence in November, McLaren’s focus is now on delivering an award-winning redevelopment.”
Cushman & Wakefield advised Barings. CBRE acted on behalf of McLaren.
