Investor Select Property has secured a £40.2m development loan from challenger bank OakNorth to develop 356 homes across two residential towers in Manchester.

Select Property Exchange Point

Select will use the finance to develop 147 flats at its 18-storey Exchange Point tower and 209 at the 16-storey Laurence Place. More than 80% of the units across both schemes have been pre-sold under Select’s Origin Homes brand.

Alongside residential units, the two tower buildings will also contain more than 14,000 sq ft of commercial space within the Greengate regeneration area in central Manchester.

Mark Stott, chief executive of Select, said: “As the city where we’re headquartered and one where we’ve now completed several large-scale residential projects, Manchester plays a very significant role in our business and our portfolio. It is one of Europe’s fastest-growing cities and with the Ordsall Chord and High Speed 2, its popularity will only continue to grow. Property now sells three times as quickly here than in London which means the city is constantly in need of new homes. We’re therefore delighted to be bringing this development to the area and are grateful to the team at OakNorth for their support on the transaction.”

Earlier this year a consortium of lenders, led by Greater Manchester Pension Fund (GMPVF), gave its backing to Select Property Group’s wider £247m Affinity Living scheme at Circle Square in Manchester.

Eamonn O’Rourke, property finance director at OakNorth, added: “The team at Select Property have successfully completed and sold a diverse range of projects from student accommodation to serviced apartments, totalling over £500m of GDV across the UK. We’re very excited to be completing our largest deal to date with them and look forward to working with them on additional projects in the future.”

The loan marks OakNorth’s largest single deal to date having secured a £154m investment in October last year and unveiled plans to lend a further £1.5bn to UK businesses over the next 12 months. Last month, the challenger bank provided a £15.3m loan to Coronado to develop a luxury residential development in the centre of Wimbledon Village.