McLaren secure £65m of forward funding for PBSA project in Manchester

McLaren Property has obtained £65 million through a forward-funding agreement with investment firm Barings for a student property asset in Manchester.

Having already secured full planning permission, the St Gabriel's Hall project on Oxford Place in Manchester combines the construction of two new blocks with the restoration of two existing heritage buildings.

The project aims to provide a total of 319 rooms, spanning 104,259 sq ft, complemented by an additional 5,005 sq ft of amenity space.

Anticipated completion is summer 2025, allowing the first residents to move in for the start of the 2025-26 academic year.

Chief executive of McLaren Property John Gatley said: "Student accommodation is attracting strong investor appetite, amid what is otherwise a challenging funding backdrop, and we anticipate this will continue due to the resilience of our sector."

Head of European residential investment and asset management at Barings Ben Pile added: "Given the continuing supply-demand imbalance for purpose-built student accommodation in Manchester, St Gabriel's Hall will provide an attractive proposition to students who will find the mix of quality specification, extensive amenity spaces and attractive landscaped grounds, proximity to world-class institutions and excellent transport links very appealing."