Carlyle’s Global Credit platform has provided Round Hill Capital with a £115m development loan to fund the construction of Fairfax, a 488-unit luxury build-to-rent scheme in Manchester, UK. It represents the first transaction between the two parties.
The Fairfax development, which was acquired via a forward funding agreement by Round Hill Capital in August 2022, comprises two towers totalling 488 one-bed and two-bed high quality apartments. Residents will benefit from exceptional amenities including a gym, 24-hour concierge, co-working space and roof terrace with panoramic views of the city skyline.
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. The development will deliver the very best of city centre living, with luxury amenities and contemporary design throughout the apartments and communal spaces.”
Serving as the gateway to the Portugal Street East masterplan regeneration area, the scheme is located within five minutes’ walk from Manchester Piccadilly station with Manchester city centre less than a kilometre away.
Specialist BTR developer Olympian Homes is the development manager on the scheme, with RG Group serving as the main contractor. Ground works have been completed.
Tom France, Head of UK Round Hill Capital, said: “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.”
