A joint venture London and Gulf real estate management vehicle says it has fully funded the Angel Gardens apartment development in Manchester for £128 million.
The 100m+, 34-storey PRS tower block has full planning consent from Manchester City Council.
The acquisition was completed through Apache Capital’s Joint Venture with Moda Living.
PRS – the Private Rented Sector – is big business in the UK.
Almost all of the new tower block developments coming to market in Salford and Manchester are aimed at the private rented sector.
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Apache Capital and Moda Living were advised on the acquisition by property management firm CBRE.
The scheme includes 520,000sq ft of residential space in 458 apartments, and promises design features including a seven-storey glazed foyer, four restaurants and plush roof terrace for five-aside football, tennis or as a yoga practice space.
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Richard Jackson, Co-Founder and Managing Director of Apache Capital Partners, said: “Our investors are clearly seeing the potential to capture attractive income growth and superior capital returns in our unique offering, through the quality of our developments and services and our first mover advantage in a significantly undersupplied sector.
“The PRS market in the UK is worth £900 billion and growing, yet remains fragmented and presently overwhelmingly dominated by small, private-let landlords. We are focused on that significant gap between increasing tenant demand and the undersupply of institutional grade and scale of stock in PRS, which will be the next institutional assets class, as we have seen with the student accommodation market.”
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Johnny Caddick, Director of Moda Living, said his firm were “setting the pace… with investments ahead of the competition”.
Chris Lacey, Executive Director and Head of Residential Capital Markets, CBRE, commented: “We are delighted to have advised Apache Capital Partners and Moda Living on the structuring of its new PRS platform JV.
“Angel Gardens is the inaugural scheme for the JV and a clear market leader. It has huge financial firepower and the ambitions to match having already secured a very extensive pipeline of PRS assets across key sites nationwide.
“Our involvement demonstrates CBRE’s commitment to the UK PRS; a fast growing sector where we see significant opportunities.
