NatWest and Santander UK lend £126m for Manchester BTR
NatWest and Santander UK have agreed a £126m debt package with Vita Group and Greater Manchester Pension Fund for their 683-home build-to-rent development at Circle Square in Manchester.
The deal assists the refinancing of existing development facilities and enables the reimagining of some of the asset’s social and co-work spaces.
NatWest, which was also involved in the original development financing of the scheme, was appointed as debt co-ordinator on the deal and sought third-party liquidity.
NatWest and Santander UK have agreed a £126m debt package with Vita Group and Greater Manchester Pension Fund for their 683-home build-to-rent development at Circle Square in Manchester.
The deal assists the refinancing of existing development facilities and enables the reimagining of some of the asset’s social and co-work spaces.
NatWest, which was also involved in the original development financing of the scheme, was appointed as debt co-ordinator on the deal and sought third-party liquidity.
Following discussions with several lenders, Santander was instructed to provide £42m. NatWest has provided £84m of financing.
Vita Group partnered with the Greater Manchester Pension Fund in 2017 to build Circle Square. Since opening in 2022, the apartments have achieved close to 100% occupancy.
Michael Slater, chief financial officer at Vita Group, said: “Gaining the backing of these prestigious institutions is of great value for the business and will facilitate the long-term development and operational plans for these market leading assets.
“Vita Living performs incredibly well in the market, driving demand from city centre renters and achieving high occupancy rates. As a result, it creates a compelling proposition for investors and funds.”
Damini Lad, vice-president of structured real estate finance at NatWest Group, added: “This transaction is another example of how we provide execution excellence, deliver optimal funding solutions alongside our lending partners, and solidify our role as a cornerstone real estate debt co-ordinator.”
NatWest and Santander have provided funding across other parts of the wider Circle Square scheme, including £100m of green finance to Bruntwood SciTech on a commercial element of the project, No.3 Circle Square, a 267,000 sq ft office.
CBRE and Addleahaw Goddard provided advice for the lenders; Hill Dickinson advised Vita Group; and Avison Young and Trowers acted for the Greater Manchester Pension Fund.
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Image: Bruntwood SciTech
