Legal & General Investment Management – Real Assets (LGIM Real Assets) has acquired the new build-to-rent North Tower in Deansgate Square, Manchester.
The acquisition has been made on behalf of its two largest balance funds, the UK Property Fund and the Management Fund.
The tower comprises 276 luxury apartments, ranging from one, two and three bedrooms across 37 storeys. The tower’s amenities include a two-storey gym, a 20m swimming pool, a sauna, a steam room, fitness studios and an indoor sports hall.
The building was acquired from developer Renaker. CBRE advised on the transaction.
The North Tower is the second tower LGIM Real Assets has acquired in Renaker’s Deansgate scheme. The adjacent West Tower was purchased in August 2018 and is 72% let.
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 subsector, giving us real-time access to occupational markets with a robust growth in rental income.”
CBRE’s residential investment director, Tom Sinclair, added: “CBRE is delighted to have advised Legal & General on the acquisition of the North Tower at Deansgate Square. The North Tower marks CBRE’s second transaction with L&G at Deansgate Square and demonstrates continued confidence in Manchester’s residential market following the strong occupier demand experienced at the West Tower.”