Legal & General (LGIM Real Assets) has secured a deal on a build to rent (BTR) tower, called North Tower in Deansgate Square, Manchester, UK, on behalf of its two funds, the UK Property Fund and the Managed Fund.
The acquisition has been made in a 50:50 ownership structure.
Designed by architects SimpsonHaugh, the tower is located at the heart of the Deansgate Square development, which is a cluster of four residential towers surrounded by commercial and public spaces.
Across 37 storeys, the tower offers 276 luxury apartments of one, two and three bedrooms.
It features a two-storey gym, 20m swimming pool, sauna, steam room, fitness studios and an indoor sports hall.
This transaction marks the Managed Fund’s first BTR acquisition as part of its move into alternative sectors.
Earlier investments include the acquisition of hotels, healthcare facilities and student accommodation.
Launched in 1971, the Managed Fund has grown by £2bn in the last six years to reach a present value of £3.4bn.
This acquisition aims to strengthen the exposure of UK Property Fund’s operational assets, which include the recent acquisition of a 189-flat BTR site in Chelmsford and 14,000ft² of self-storage space across three locations.
The UK Property Fund, which was launched in 2006, has grown from £100m to £3bn.
The tower was acquired from its developer Renaker, with CBRE advising on the deal.
Manchester is considered to be a ‘beta’ global city, as it is an economically influential place in the UK outside of London.