Barings Acquires Manchester BTR Scheme From Moorfield in £53.5m Transaction
Sep 14, 2021
The Trilogy comprises 232 apartments and is 90% occupied
Barings, one of the world’s largest diversified real estate investment managers has acquired The Trilogy, a fully stabilised income producing build to rent (BTR) asset in Manchester from Moorfield, on behalf of Moorfield Real Estate Fund III, for £53.5 million in an off-market transaction.
The transaction marks Barings’ latest BTR acquisition as part of its strategy to invest approximately €350 million into residential property over 2021. Barings’ living portfolio now comprises in the region of 1,130 residential units and 267 student beds completed or in development.
Developed by Moorfield and launched to the letting market in 2019, the award winning scheme(1) offers 232, one, two and three bed apartments, together with a range of onsite amenities, including a gym, 24 hour concierge, underground car parking for 75 vehicles (including electric charging points), extensive bike racks, a communal courtyard garden and a residents’ lounge.
The pet friendly scheme is located approximately one mile away from Manchester City Centre in Castlefield, in Manchester’s former industrial heart. It benefits from easy and fast access to strong transport infrastructure making it ideal for commuters with the Cornbrook Metrolink Station, a major interchange on the Metrolink line, only a short walk away. In addition, the scheme is also only four miles from the M60 Manchester Ring Road and nine miles from Manchester Airport.
Darren Hutchinson, Head of UK Real Estate Transactions at Barings, said: “This acquisition was a unique opportunity to enter the attractive Manchester BTR market through a proven operational asset. Manchester is a market we know well, having previously invested in PBSA and prime office space in the city, and we are confident that the list of major occupiers choosing Manchester as their regional hub will only continue to grow in the months and years ahead, further underpinning the attractiveness of the city for young talent from its universities and thereby creating a deep pool of demand for rental accommodation.”
Ross Netherway, Head of Origination at Moorfield Group¸ commented: “Having designed and developed the scheme specifically for rent in partnership with Glenbrook, we achieved full occupancy shortly after opening in 2019. This sale concludes another successful investment for MREF III and closely follows the recent disposal of The Forge in Newcastle. Investment in BTR remains a key limb in our wider beds investment strategy, which also includes student, healthcare and senior living.”
Nick Pleydell-Bouverie, Head of Residential Capital Markets at Knight Frank, added: “As one of the first purpose-designed and operational build to rent assets to have traded in the UK market, The Trilogy represents a landmark transaction for the sector. The weight of both domestic and overseas capital seeking to invest in high-quality product continues to accelerate. This demand is being driven by the sector’s recent strong operational performance, which has taken place against a backdrop of Covid-19 and multiple national lockdowns.”
The strong regional presence of the build to rent sector has grown rapidly over the last five years. According to Knight Frank’s latest research, in the first half of 2021, £2.35 billion of capital was invested into the UK’s BTR sector – 70% of the funds committed were for schemes outside of London.
Barings was advised by CMS. Moorfield Group was advised by Knight Frank and Shoosmiths.
Barings Real Estate
Barings Real Estate (BRE) offers a broad range of global investment opportunities across the private debt and equity investment markets. BRE invests in all major property sectors and offers an expansive range of financing solutions to real estate borrowers. Follow us on LinkedIn at www.linkedin.com/showcase/barings-alternative-investments.
Barings is a $382+ billion* global investment manager sourcing differentiated opportunities and building long-term portfolios across public and private fixed income, real estate, and specialist equity markets. With investment professionals based in North America, Europe and Asia Pacific, the firm, a subsidiary of MassMutual, aims to serve its clients, communities and employees, and is committed to sustainable practices and responsible investment.
*Assets under management as of June 30, 2021
About Moorfield Group (www.moorfield.com)
Moorfield Group is a leading UK real estate fund manager with a 25-year track record of investing across most sectors of UK Real Estate. Moorfield is especially well known as a vanguard investor in emerging sectors and has pioneered investment in student accommodation (since 1997), Build-to-Rent/PRS (since 2012) and senior living (since 2008). Moorfield also has an extensive track record in successfully identifying evolving investment themes in the office and industrial/logistics sectors.
Moorfield operates under an investment and asset management structure that enables it to be a vertically integrated (in-house) asset manager to the assets invested in, or to be a partner to those with proven operational/development expertise, through its long established strategic outsourcing model. Moorfield’s in-house expertise and track record of partnerships uniquely positions it to identify and deliver high returning investment opportunities.
Since 2005 Moorfield has raised five private equity real estate funds; four Moorfield Real Estate Funds (MREFs) together with a dedicated senior housing platform, Moorfield Audley Real Estate Fund (MAREF).
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