Maslow Capital completed a £136.8 million facility for Vita Group, secured by the North and East Towers at Circle Square, a mixed-use development along Manchester’s Oxford Road corridor.
The facility refinances the towers’ existing debt and supports Vita’s acquisition of its joint venture partner’s interest in both towers, bringing them into full Vita ownership. It will also support the phased sale of 487 completed and let apartments, along with 14 ground-floor commercial units.
Developed on the former BBC site on Oxford Road, Circle Square has become one of Manchester’s most prominent mixed-use neighbourhoods. It brings together residential, Grade A office, retail and leisure space, alongside extensive public open space, including Symphony Park at its centre. John Sisk & Son delivered the North and East Towers, which reached practical completion in 2021.
Apartments are sold fully furnished as income-producing investments and are attracting demand from both UK and international purchasers. Residents’ amenities include a 24-hour concierge, private dining rooms, a cinema room and resident lounges, with the North Tower also offering a gym and dedicated co-working space.
The scheme sits within walking distance of the University of Manchester, Manchester Metropolitan University and the city’s central business district, and is a minute’s walk from Oxford Road station.
The sponsor, Vita Group, is an established developer and operator of purpose-built student and residential living assets across the UK and Europe. Maslow has an existing relationship with the group, having previously financed Select Properties’ Port Street and City Suites 2 schemes in Manchester.
Matt Pigram, Senior Director, Origination at Maslow Capital, said:
“Circle Square is a completed, income-producing asset in one of Manchester’s strongest city-centre locations, with a unit sales programme that was already well progressed. The facility gives Vita the flexibility to refinance, take full ownership of the towers and continue executing its strategy for the assets, with rental income servicing the debt in the meantime. It is a clear example of how a facility can be structured around an operating asset rather than a construction programme.”
Daniel Murray, Senior Director, Short-Term Finance at Maslow Capital, said:
“Large completed residential schemes increasingly need funding that bridges the period between practical completion and the sale of the final units. That is exactly what our short-term finance offering is designed to do. Working with a sponsor we know well, on an asset of this scale and standing, meant we could deliver a substantial facility within the borrower’s timetable.”
Peter Shipley, Finance Director at Vita Group, said:
“Bringing the North and East Towers into full Vita ownership was a natural opportunity for us given our long-standing history with Circle Square. These are high-quality, established assets, and our facility with Maslow gives us the flexibility to execute the next phase of our strategy while continuing to operate the buildings as successful, income-producing investments.
“Our established relationship with Maslow, and their understanding of both our business and the assets helped us deliver the transaction efficiently.”
