Barings funds Manchester PBSA

Investment manager Barings has forward funded a 319-bed student housing block in Manchester for £65m. St Gabriel’s Hall in Oxford Place is being developed by McLaren Property and will deliver a part new build/part refurb scheme of around 110,000 sq ft. Completion is expected in summer 2025, enabling the first residents to move in in time for the start of the 2025/26 academic year. The development is just to the south of the University of Manchester and the Royal Infirmary and is within a 10-minute walk of the University of Manchester, Manchester Metropolitan University, and the Royal Northern College of Music. The new build element of the scheme is set to achieve EPC A alongside a BREEAM Excellent rating. The development will be partly powered by air source heat pumps to produce hot water, with no gas used on site. Darren Hutchinson, managing director and head of UK real estate transactions at Barings, said: “The sector has proven very resilient over the past few years which is why we see a strong opportunity to create modern, high-quality stock that meets the aspirations of students against a background of constrained supply in the UK. Aside from PBSA as an asset class, we are very interested in further widening our exposure to BTR across the country in major cities.” McLaren chief executive John Gatley added: “Student accommodation is attracting strong investor appetite, amidst what is otherwise a challenging funding backdrop, and we anticipate this will continue due to the resilience of our sector.” Cushman & Wakefield and MTRE advised Barings; CBRE acted on behalf of McLaren. Image from McLaren Property