Major Manchester Built-to-Rent Scheme by L&G Selling for £110 Million
Aviva Investors to acquire asset in Salford
Aviva Investors is set to acquire a major build-to-rent scheme in Salford from Legal & General (L&G) for £110 million, reflecting a net initial yield of 4.45%. The scheme, known as The Residence, is located in the Chapel Street area of Salford, adjacent to MediaCityUK. It comprises 352 one-, two- and three-bedroom apartments across two towers, as well as 13,000 sq ft of commercial space.
The scheme is part of L&G's wider £1 billion Salford Central masterplan, which is transforming the area into a vibrant new neighborhood. The Residence is the first phase of the masterplan to complete, and it has already attracted a strong level of interest from potential tenants.
The acquisition is in line with Aviva Investors' strategy of investing in high-quality, income-generating real estate assets. The firm has a strong track record in the build-to-rent sector, and it currently manages over £1 billion of assets in this sector across the UK.
James Stevens, Head of Real Estate Debt at Aviva Investors, said: "This acquisition is a great opportunity for us to add a high-quality, income-generating asset to our portfolio. The Residence is a well-located, well-designed scheme that is already attracting strong interest from tenants. We are confident that it will continue to perform well in the long term."
The sale of The Residence is a significant milestone for L&G's Salford Central masterplan. The masterplan is set to create a new neighborhood of over 2,000 homes, as well as a range of commercial and leisure facilities. The scheme is expected to attract over £1 billion of investment and create over 2,000 jobs.
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