One of the world’s largest diversified real estate investment managers – Barings – has acquired The Trilogy Build to Rent scheme in Manchester from Moorfield Group, on behalf of Moorfield Real Estate Fund III (MREF III), for £53.5m in an off-market transaction. The Trilogy is a fully stabilised income producing Build to Rent asset which is currently 90% occupied. Barings were advised by CMS and Moorfield Group were advised by Knight Frank and Shoosmiths.
This transaction marks Barings’ latest Build to Rent acquisition as part of its strategy to invest approximately €350m into residential property over 2021. Barings’ living portfolio now comprises around 1,130 residential units and 267 student beds completed or in development.
“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 Build to Rent remains a key limb in our wider beds investment strategy, which also includes student, healthcare and senior living.”
Ross Netherway, Head of Origination, Moorfield Group
Developed by Moorfield, The Trilogy launched to the lettings market in 2019 – and was one of the first Build to Rent schemes to have traded in the UK. The award winning scheme offers 232 Build to Rent homes – a mix of one, two and three bedroom apartments. Amenities include a gym, 24 hour concierge, underground car parking for 75 vehicles and electric charging points, extensive bike racks, a communal courtyard garden and a residents’ lounge.
“This acquisition was a unique opportunity to enter the attractive Manchester Build to Rent 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.”
Darren Hutchinson, Head of UK Real Estate Transactions, Barings
The Trilogy is a pet friendly scheme located about one mile away from Manchester City Centre in Castlefield – in Manchester’s former industrial heart. Residents benefit from easy and fast access to strong transport infrastructure making it ideal for commuters. The Cornbrook Metrolink Station, a major interchange on the Metrolink line is a short walk away. The scheme is also only four miles from the M60 Manchester Ring Road and nine miles from Manchester Airport.
“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 a 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.”
Nick Pleydell-Bouverie, Head of Residential Capital Markets, Knight Frank
Over the last five years, the strong regional presence of the Build to Rent sector has grown rapidly. According to Knight Frank’s latest research, in the first half of 2021, £2.35bn of capital was invested into the UK’s Build to Rent sector – and 70% of the funds committed were for schemes outside of London.
