Atlas Residential and IP Investment Management (IPIM) have announced the acquisition of a £55m waterfront development in MediaCityUK, Salford, from Peel Land & Property.
The scheme, which will be MediaCityUK's first forward funded build to rent development, is to be located on The Manchester Ship Canal, directly opposite ITV's 'Coronation Street' and adjacent to the offices of the BBC.
Due to start construction in October 2017, the 189,204 sq ft building will feature 238 contemporary apartments for rent over 19 floors.
This is Atlas' third BtR investment following its projects in Southampton and Birmingham, but it is an overall double first because until now there has been no purpose built PRS development in MediaCityUK.
Furthermore, this represents a new partnership for Atlas & IPIM, which both parties intend to replicate by capitalising on the success of this deal with further acquisitions.
IPIM's funds focus on acquiring opportunistic and value add investments in alternative sectors including student accommodation, healthcare, PRS and hotels in Europe, the US and Australia. To date IPIM's investments in UK markets have comprised the funding of nine student accommodation assets totalling 1,431 beds with a GDV of over £160m. The acquisition of this site in MediaCityUK represents IPIM's first investment in the UK PRS sector, where it hopes to replicate the success of its investments in US multifamily.
Jonathon Ivory, managing director at Atlas said: “This acquisition continues Atlas' thematic 'first mover advantage' strategy which we have successfully executed in both Southampton and Birmingham already. We consider MediaCityUK to be a core part of the Greater Manchester regeneration story and by acquiring this asset are pleased to be participating in the success of Peel's impressive master planned vision.
"Equally, we are excited to be partnering with IPIM who share our goal of seeking out value and opportunities in regions throughout the UK that display the same fundamentals that we look for in our US acquisitions, namely positive population growth in job engine locations with excellent transportation combined with an acute supply / demand housing imbalance."
Selina Williams, Investment Director at IP Investment Management commented: "We have been monitoring the UK PRS sector for some time, to identify the right operator partner and a site that meets our investment criteria for our first acquisition. The UK PRS sector is a natural progression following our investments in direct-let student accommodation.
“We look forward to working with Atlas on this project, which we hope will be the first of many as we continue to look for new opportunities to acquire well located sites into 2018."
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