L&G doubles up at Manchester’s Deansgate
Legal & General Investment Management has acquired its second build-to-rent tower at Renaker’s Deansgate Square in Manchester.
It has exchanged contracts to buy North Tower, the smallest of the four towers, with 276 flats over 37 storeys.
The acquisition follows its purchase of the 44-storey West Tower in 2018, bringing the total number of flats to 626, with an end value of around £350m.
Legal & General Investment Management has acquired its second build-to-rent tower at Renaker’s Deansgate Square in Manchester.
It has exchanged contracts to buy North Tower, the smallest of the four towers, with 276 flats over 37 storeys.
The acquisition follows its purchase of the 44-storey West Tower in 2018, bringing the total number of flats to 626, with an end value of around £350m.
L&G made the acquisition on behalf of its two largest funds, the UK Property Fund and Managed Fund.
It is the first BTR buy from its £3.4bn Managed Fund as part of a push into alternatives. The fund has also invested in hotels, student accommodation and healthcare facilities. It also sees the £3bn UK Property Fund increase its exposure to operational assets
Michael Barrie, director of real estate fund management at LGIM Real Assets, said: “This acquisition represents the coming together of two of LGIM Real Assets’ largest funds as we continue to diversify our exposure to alternative sectors.
“Alongside hotels, self-storage and student accommodation, BTR will continue to be a preferred sub-sector, giving us real-time access to occupational markets with a robust growth in rental income.”
CBRE advised L&G.
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