US funder backs Manchester BTR with £115m loan 

Carlyle has provided Round Hill Capital with a facility for the 488-apartment Fairfax in Piccadilly East.

Round Hill signed a £165m forward-funding agreement to acquire the Manchester build-to-rent scheme in August 2022 and has now secured a £115m loan from the US funder.

Specialist BTR developer Olympian Homes is the development manager on the scheme, which comprises two towers of 23 and 29 storeys.

RG Group is the main contractor. Ground works have been completed, and above ground work is underway.

Taj Sidhu, head of Carlyle European and Asian Private credit, said: “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.”

Tom France, head of UK at Round Hill Capital is anticipating strong demand for the homes at Fairfax.

Manchester’s population has grown 10% over the past decade with further growth predicted. The delivery of homes has not kept pace with population growth, causing rents to rise 13% in the last year.

A recent CBRE report ranked Manchester as the UK’s top growth city for BTR.

Tom France, Head of UK Round Hill Capital, added: “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 an 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 BTR schemes.”