The acquisition was made on behalf of LGIM Real Assets' two largest balanced funds.
Legal & General (LGIM Real Assets) has exchanged contracts on a build-to-rent (BTR) tower in Manchester.
The acquisition was made on behalf of LGIM Real Assets' two largest balanced funds, the UK Property Fund and the Managed Fund.
The North Tower in Deansgate Square represents the Managed Fund's first BTR acquisition as part of a sustained push into alternative sectors.
LGIM Real Assets now has 16 UK-wide sites in operation and development.
Michael Barrie, director of real estate fund management at LGIM Real Assets, said: “This acquisition represents the coming together of two of LGIM Real Assets’ largest funds as we continue to diversify our exposure to alternative sectors.
"Alongside hotels, self-storage and student accommodation, BTR will continue to be a preferred subsector, giving us real-time access to occupational markets with a robust growth in rental income."
CBRE advised on the transaction.
Tom Sinclair, residential investment director at CBRE, said: “CBRE is delighted to have advised Legal & General on the acquisition of the North Tower at Deansgate Square.
"The North Tower marks CBRE’s second transaction with L&G at Deansgate Square and demonstrates continued confidence in Manchester’s residential market following the strong occupier demand experienced at the West Tower.
"On completion, the North Tower will provide exceptional residential accommodation, providing more renters with the opportunity to experience life at this desirable residential address.”
