Maslow provides a £123m development facility for two iconic residential towers

The Gross Development Value (“GDV”) of the completed scheme is expected to be in excess of £230M
The development will bring one of the UK’s tallest residential structures to an area of the UK that has had a chronic undersupply of high-quality residential accommodation

London, 14 October 2019 – Specialist Development Finance provider Maslow Capital has today announced the completion of a £123million development facility to fund the construction of two iconic residential towers in Manchester.

With an estimated gross development value in excess of £230million, the project will seek to meet huge demand in a city that has one of the highest proportions of young workers (aged 18-34) in the country, a key demographic in the UK’s rental market.

Strong demand for high quality city-centre residential units in Manchester continues, supporting a steady increase in both capital values and rents, making Manchester a major UK investment hub.

Commenting on the supply of residential units in Manchester, Partner & Deal Originator Matt Pigram, said: “Despite a large increase in supply over the past few years, our market research shows an ongoing shortfall of supply of residential dwellings in the Manchester region. As a lender we are delighted to see a residential development of this scale under construction by a proven developer that is fully committed to meeting the housing demand in the city.”

The development will consist of two towers reaching 21 and 52 storeys respectively, providing a combined total of 664 residential units. The taller of the two towers will offer 360-degree views across the city and is set to become one of the most iconic on Manchester’s skyline. Residents will benefit from the finest facilities; including a resident’s lounge, a rooftop garden, a co-working space and one of the highest swimming pools in western Europe which is located on the 44th floor.

The completion of this £123m loan marks Maslow Capital’s eleventh facility in Manchester, making it a key and experienced lender in the northern region.

Commenting on Manchester’s ambitious development plans James Henry, who led the structuring of the loan facility said: “More students are residing in Manchester post-graduation than ever before, leading to an annual increase in the size of the working population that need high quality, well located accommodation. As a lender with close ties to Manchester, we are extremely pleased to be deploying an additional £123m into such an ambitious regeneration project.”

Maslow Capital CEO & Co-Founder, Ellis Sher added

“We are delighted to be supporting the delivery of a scheme of such scale and quality by such an accomplished and experienced developer. Despite the political and economic uncertainty, all the parties involved have done what they said they would do and remain focused on the delivery of this important project. It’s easy to lose sight of the housing shortages that many parts of the country face with all the Brexit noise around us. It’s important to Maslow that we support high quality developers throughout the cycle, ignoring some of the near-term volatility and focus on the long-term fundamentals.”

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Maslow Capital is a leading provider of real estate development finance. We help developers realise their ambitions. We offer flexible funding solutions for professional developers across the UK undertaking residential, mixed-used, student, hotel and industrial developments.

Maslow announces a strong start to 2019 with the successful completion of eight transactions with a combined loan value over £100m

Maslow Capital, the specialist provider of real estate development finance, announces an excellent start to the year with the completion of a diverse range of development facilities that will see the delivery of 442,856 sq ft. of real estate assets covering residential, serviced apartments, student accommodation and retirement living.

With the completion of these deals, Maslow continues to demonstrate its deep sector and asset class knowledge which allows for the funding of complex deals across the UK. Strenghed by its depth of funding and recent high-profile additons to the team, Maslow continues to support capable developers in the delivery of their business plans notwithstanding the economic uncertainty facing the UK.

Commenting, Ellis Sher, Co-Founder and CEO of Maslow Capital, said:

“We are delighted with the start we have made to 2019, not only because of the quality of the transactions, but also their diversity. With the expansion of the Maslow team, we have more internal expertise to assess a wider array of deals which include specialist retirement living and serviced apartments. As we navigate the uncertain consequences of Brexit, we are committed to supporting our developers and working in partnership with them to deliver their real estate projects.”

Maslow is one of a handful of specialist development lenders who are able to write loans from £5 million with no upper limit and without rating agency or regulatory influence. The flexibility of Maslow’s balance sheet allows it to support multiple types of real estate and construction methodologies from self-build to fixed price and from part built to ground up.

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£100 million in loan facilities in a record-breaking month

June has been a record-breaking month for Maslow Capital; completing £100 million of new facilities across four deals. The transactions will see the delivery of 1,100 new residential and student accommodation units in Manchester and Glasgow.

In total, these developments will deliver in excess of 847,000 sq. ft. of new residential and student accommodation. Three of the deals, totalling over 736,000 sq. ft. are located in Manchester, with the remaining deal providing 111,000 sq. ft. of purpose-built student accommodation in Glasgow.

Maslow’s record month follows more than £200 million of new development loans so far in 2018; a 20% increase compared with the same period last year. The addition of these four deals takes the total to over £300 million for the six-month period ended June 2018.

These recent closings highlight the strong demand for alternative sources of finance from UK developers. It also reinforces Maslow’s view that there is a broadening appetite for specialist lending.

Sky Mapson, Lead PBSA and Residential Originator at Maslow Capital, who is responsible for the four deals, said:

“The closing of these deals is further proof that not only is the demand out there for specialist funding but that developers are connecting in a big way with providers who combine a flexible approach with real expertise. That we can close £100m in facilities in just one month is a testament to the confidence that we and our clients have in certain parts of the UK and the chronic need for new housing in these cities. These deals demonstrate that we have a strong appetite to support regional developments across the country, providing loan facilities with an average size of £25m to experienced sponsors.”

June has been a tremendous month for Maslow following a strong start to 2018. Maslow Capital is delighted to meet the growing demand for alternative financing from developers throughout the country. In particular, continuing to see more and more opportunities across cities in the north and in Scotland – with Manchester and Glasgow two prime examples. Maslow expects this trend to continue throughout the year, as well as the broader trend of demand from clients for the unique combination of specialist knowledge, balance sheet strength, and structured credit facilities.

An exclusive feature was showcased by Real Estate Capital, read more here.

NEWS: 2018 kicking off with 4 deals, £74 million

Maslow is delighted to announce the completion of four exciting deals with a total of £74 million lent.

The four deals provide funding for new residential developments in London and Manchester, delivering more than 80 new apartments and new commercial space along with 211 student beds in Coventry, and 246 in Sheffield. In aggregate, the developments will deliver more than 195,000 sq. ft. of new accommodation in sought after locations.

Specifically, these loans will assist with the delivery of 18 new apartments and a new commercial unit at Halt Parade, London, NW9 arranged over six floors and the construction of 66 new flats which will be delivered in the Ancoats district of central Manchester, addressing continuing need in the city for well-located apartments.

In Coventry and Sheffield, the funding packages will see more than 450 new student beds brought to market in cities where university accommodation continues to be in high demand. Both cities are growing as centres for education, and these new facilities, which will be located near main university campuses, will be completed in time for the 2018/19 academic year.

The deals represent a continuation of Maslow’s diversification of its exposure into different real estate market segments covering residential, mixed-use and purpose-built student accommodation across the UK.

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