Vita Group has completed a £136.8m refinancing facility with Maslow Capital secured against the North and East Towers at the Circle Square mixed-use development in Manchester.
The facility refinances the towers’ existing debt and supports Vita’s acquisition of its joint venture partner’s interest in both towers, bringing them into full Vita ownership.
It will also support the phased sale of 487 completed and let apartments, along with 14 ground floor commercial units at the scheme, which has been built on the former BBC site on Oxford Road.
The on-site amenity provision includes a 24-hour concierge, private dining rooms, a cinema room and resident lounges, with the North Tower also offering a gym and dedicated co-working space.
Matt Pigram, senior director, origination at Maslow Capital, said: “Circle Square is a completed, income-producing asset in one of Manchester’s strongest city centre locations, with a unit sales programme that was already well progressed. The facility gives Vita the flexibility to refinance, take full ownership of the towers and continue executing its strategy for the assets, with rental income servicing the debt in the meantime. It is a clear example of how a facility can be structured around an operating asset rather than a construction programme.”
Daniel Murray, senior director, short-term finance at Maslow Capital, added: “Large completed residential schemes increasingly need funding that bridges the period between practical completion and the sale of the final units. That is exactly what our short-term finance offering is designed to do. Working with a sponsor we know well, on an asset of this scale and standing, meant we could deliver a substantial facility within the borrower’s timetable.”
Peter Shipley, finance director at Vita Group, said: “Bringing the North and East Towers into full Vita ownership was a natural opportunity for us given our long-standing history with Circle Square. These are high quality, established assets, and our facility with Maslow gives us the flexibility to execute the next phase of our strategy while continuing to operate the buildings as successful, income-producing investments. Our established relationship with Maslow, and their understanding of both our business and the assets helped us deliver the transaction efficiently.”
