Greater Manchester Pension Fund (GMPF) has committed to providing a loan of £31.3 million to developer Placefirst for two build-to-rent (BTR) schemes in Bolton and Halifax town centres.
The £31.3 million loan will be divided between the two projects. The Bolton initiative will receive £22.6 million, facilitating the creation of 167 one and two-bedroom units on a 1.1-hectare brownfield site. This location will also include approximately 5,000 square feet of commercial space, communal green areas, and a new public square.
In Halifax, the transformation of a former multi-storey car park into 122 one and two-bedroom units is being supported by an £8.75 million loan. This development will also feature communal recreational spaces for residents. Both projects aim to provide high-quality, affordable rental housing in priority regeneration areas, thus stimulating investment in their respective town centres.
The developments embody a commitment to sustainability, as each project will be all-electric, partially powered by photovoltaic panels and air source heat pumps. The housing units will also include cycle and electric vehicle parking spaces and meet a minimum EPC B rating. The enhancements are designed to elevate the living standards in these areas significantly.
Cllr Ged Cooney, Chair of GMPF and leader of Tameside Council, expressed the importance of the investment: “As a leader of a Council as well as a chair of a pension fund I know the depth of the housing crisis in which we find ourselves as a nation. We see it as we place record numbers of homeless children in temporary accommodation; as we grapple with waiting lists for social housing getting longer and longer; and younger residents are priced out of home ownership. That’s why we are proud to make this investment with Placefirst and support the Government’s plan to provide much needed affordable homes for hardworking families whilst delivering strong low risk returns to pay the pensions of our hardworking members.”
Will Church, Executive Director at CBRE, commented on the significance of this venture: “We deploy significant amounts of debt from our pool of capital into the North West, as recently demonstrated by these two whole loans to Placefirst. This is the second loan we have made on behalf of GMPF since securing our mandate and the first housing-led loan. This loan will contribute to the essential housing needed in the region, while adding real socio-economic benefits to Bolton and Halifax town centres. We remain interested in supporting further development across all main asset classes with loans that have appropriate risk adjusted characteristics and, crucially, which bring regeneration to the region.”
David Mawson, Chief Executive of Placefirst, highlighted the broader impact of the projects: “We’ve long been committed to addressing housing shortages by delivering much-needed high-quality rental homes in prime locations. Through these brownfield developments, Placefirst will revitalise neighbourhoods that have been bursting with potential, leaving behind well-connected homes that offer communities a new standard for rental living. As developers and operators, we are long-term partners with our residents and the communities we build in which is why we’re people-focused from design to operation. This GMPF loan is a testament to the social and economic benefits our developments have been proven to deliver for local communities. From encouraging wider investment into the area to helping communities connect, our developments offer long-standing value.”
Both schemes are already under construction and are projected to reach completion in 2025. Following completion, Placefirst will remain on site, managing all aspects of the neighbourhood with dedicated resident services managers.
The loan by GMPF to Placefirst marks a significant step towards addressing housing shortages in Bolton and Halifax. These projects promise to deliver high-quality, sustainable, and affordable homes while contributing to the socio-economic regeneration of these areas.