Round Hill Capital secures loan from Carlyle for Fairfax BTR

Round Hill Capital secures a development loan from Carlyle for Fairfax - a luxury Build to Rent scheme in Manchester.

CGI of the Fairfax Build to Rent development. Round Hill Capital secures a loan from Carlyle for its construction | BTR News
CGI of the Fairfax Build to Rent development. Round Hill Capital secures a loan from Carlyle for its construction.

Round Hill Capital secures a £115m development loan from global investment firm Carlyle’s (NASDAQ: CG) Global Credit platform. This is the first transaction between the pair, which will fund the construction of Fairfax – a luxury Build to Rent scheme in Manchester.

In August 2022, Round Hill Capital acquired the Fairfax development via a forward funding agreement. The scheme will deliver 488 units in a mix of one- and two-bedroom apartments across two buildings.

Amenities include a gym, co-working space and a roof terrace with panoramic views of the city skyline. Residents will also benefit from a 24-hour concierge.

“This is a unique opportunity to fund a large scale and landmark residential development alongside a highly established living sector investment manager, in what is a prime area of Manchester.

“Leveraging the resources and experience of Carlyle’s Global Credit team, the development will deliver the very best of city centre living, with luxury amenities and contemporary design throughout the apartments and communal spaces.”

Taj Sidhu, Head of Carlyle European and Asian Private Credit

The development manager on the Fairfax scheme is Olympian Homes, with RG Group as the main contractor. With construction already underway, ground works have been completed, with the concrete cores well progressed.

Serving as the gateway to the Portugal Street East masterplan regeneration area, Fairfax is located within a five minutes’ walk from Manchester Piccadilly station with Manchester city centre under a kilometre away.

Manchester has experienced significant demographic growth, with the city’s population growing by 10% and employment by 28% over the past decade. A recent CBRE report ranked Manchester as the UK’s top growth city for Build to Rent.

“Fairfax is our flagship UK Build to Rent scheme, in what is one of our high conviction sectors where we have ambitions to continue scaling our exposure. Carlyle is a blue-chip lender, and their support is a strong endorsement of our vision for the scheme.”

“Manchester is one the UK’s most vibrant and dynamic cities which is now firmly established as the UK’s dominant alternative to London. This has underpinned a growing influx of young professionals and students for whom thoughtfully designed rental properties in central locations are highly sought after. With a limited development pipeline, we anticipate strong demand for what will be one of the city’s premier Build to Rent schemes.”

Tom France, Head of UK, Round Hill Capital

As of 30 September 2023, Carlyle Global Credit managed $150bn in assets. It is an active provider of private credit solutions across the capital structure, including senior secured loans, unitranche loans and junior debt.