London’s OakNorth backs Manchester resi scheme with £20.7m funding

OakNorth is backing a 387-home development in the North West with a £20.7m loan.

The London-based bank provided the eight-figure boost to developer Fortis Group, which will use the capital to develop Adelphi Wharf on Manchester’s Adelphi Street.

The scheme will comprise 61 studio flats, 152 one-beds, 146 two-beds and 28 three-bed apartments.

Adelphi Wharf, due for completion in December 2019, will also house two retail units with a gross internal area of 5,920 sq ft.

OakNorth’s property finance director, Hemesh Patel, said: “Manchester has established itself as the second most important economic hub in the UK behind London, creating a strong driver of demand for city centre living.

“Property now sells three times as quickly here than in the capital and demand significantly outstrips supply, as evidenced by the fact that Fortis has already pre-sold almost 400 units more than 12 months before doors will be opening.”

Hemesh continued: “The team at Fortis have exceptional knowledge of the city and have successfully completed dozens of projects in the past. We were delighted to be chosen as their partner on this transaction and look forward to working with them on future projects.”

Fortis was founded in 2012. In the last three years, the company has completed 15 student and residential developments totalling 1,500 apartments.

The firm’s executive director, Gareth Morgan, commented: “We have now completed several large-scale residential projects in Manchester with several more currently under construction, so it’s a city we know well and one that is in desperate need of more homes.

“It is one of Europe’s fastest-growing cities and with the Ordsall Chord and High Speed 2, its popularity will only continue to grow.”

He added: “We’re grateful to the team at OakNorth for their support on the transaction.”