Invesco Real Estate has unveiled plans to develop a 261-bed purpose-built student accommodation (PBSA) scheme in Manchester with Alumno.
Invesco has acquired a development site less than a 10-minute walk from the centre of the University of Manchester campus and a circa 15-minute walk to Manchester Metropolitan University on behalf of Invesco Real Estate Europe Fund III – SCSp (Europe III) – the third European value-add strategy in succession for the firm.
The 50,000 sq ft scheme will provide 207 cluster beds – 52 affordable – and 54 studios. Invesco is targeting an EPC A and BREEAM Excellent rating for the development.
Rob Johnston, managing director, head of investments, UK and Nordics at Invesco Real Estate, said: “The UK’s PBSA market continues to offer strong investment opportunities, particularly in critically underserved cities such as Manchester. We are delighted to have secured this well-located site and look forward to working with Alumno to deliver a high quality product to the market, which will ultimately create value for our investors.”
Kevin Grundy, managing director – fund management, Europe at Invesco Real Estate, added: “Market repricing and the temporary retreat of core capital have combined to open up a number of attractive opportunities around Europe in sectors with positive tailwinds such as PBSA. We expect Europe III to be active in this sector as well as others where the risk/return balance has moved in favour of value-add investors who are prepared to move with speed and conviction.”
David Campbell, founder and managing director of Alumno, said: “It is a significant step and highlight for the company to be working on this exciting project, with such an established and well regarded global investment leader, such as Invesco Real Estate. We are looking forward to progressing the project with the Invesco team and delivering a first-class building, our second in Manchester.”
Invesco Real Estate was advised on the transaction by Lewis & Partners.
