Two Asian property developers have committed to residential schemes in Manchester, their first investments in the UK.
Hong Kong-based developer Top Spring International and Singapore鈥檚 Metro Holdings are funding the two schemes in the UK city, taking equal stakes in a joint venture with developer Scarborough.
Scarborough said the two projects in New Islington and west Manchester have a gross development value of 拢600m. Top Spring and Metro will each hold 25% of the joint venture, with Scarborough retaining a 50% stake.
Winston Choo Wee Leong, chairman of Metro Holdings, said it had been attracted by the dynamism of Manchester鈥檚 residential market.
Kevin McCabe, chairman of Scarborough, said there was 鈥渧ery strong demand鈥� for housing in central Manchester, and, as in many parts of the UK, a shortage of supply.
The city has seen increased appetite from both UK and international investors in recent months. M&G Real Estate and Hermes have both committed to significant Manchester construction schemes, respectively investing in Spinningfields Square and The Co-operative Group鈥檚 拢800m NOMA redevelopment scheme.
An analysis carried out by Legal & General Property detailed the rationale behind the move to UK regional cities.
Manchester鈥檚 拢800m Airport City scheme has also attracted international capital. Beijing Construction Engineering Group has invested in the mixed-use project, taking a 20% stake alongside the Greater Manchester Pension Fund (GMPF), which has a 10% stake.
