A deal has been agreed for £32m of funding for a 144-apartment scheme in Manchester - with a third of units allocated to local keyworkers.
Real estate investor Cheyne Capital and North West developer Mulbury announced the forward funding deal for the project on Oldham Road in New Cross.
Once complete, 35% of homes at the 12-storey development will be for nurses, teachers and emergency service workers at discounted rents.
It will comprise one, two and three bedroom apartments and work, entertainment and relaxation spaces, ground floor retail facilities, and a 3,000 sq ft roof terrace providing outside space for residents.
Stuart Fiertz, Cheyne Capital’s co-founder and head of responsible investment, said: “As cities expand, it is too often the case that keyworkers get priced out of the central housing market and forced to either downsize or move to less accessible areas.
"We are therefore committed to delivering high quality homes in desirable locations – and to ensuring that they remain affordable now and into the future.
“Mulbury has an excellent track record of delivering high-quality housing in Manchester and we look forward to working together to help address the UK’s severe shortage of inclusive, affordable housing.”
The site is currently occupied by outdated industrial buildings and a small surface level car park.
Mulbury said it hopes to start demolition and remediation work on the site in February 2021. It is expected that the building will be completed by summer 2023.
The building has been designed by Manchester-based Tim Groom Architects and Mulbury has also appointed locally-based YOUTH Studio as interior designer for the project.
Deloitte Real Estate acted as planning consultant and CBRE advised Mulbury on the transaction.
Beyond Corporate provided legal advice to Mulbury on the funding with Cheyne Capital, while Primas Law acted as legal advisor on the site acquisition and assembly.
GMI Construction has been appointed as main contractor.
Martin Bury, co-founder and director at Mulbury, added: “Cheyne’s social impact values are aligned with our own vision for providing choice and affordability in the Manchester housing market.
“We’re delighted to have secured the forward funding to make this development a reality. The standard of the design and the quality of the accommodation on offer will provide an iconic new building and support the ongoing renewal of residential accommodation within New Cross.”
