Downing has secured a £249.2 million refinancing package for two major residential towers at its £400 million Square Gardens development in Manchester, marking another significant milestone for one of the city’s largest new living schemes.
The financing, provided by Bank of Ireland, covers Acer and The Fernley, the two completed co-living buildings within the wider Square Gardens development in Manchester’s First Street district.
Together, the buildings provide a major concentration of new rental accommodation, with the 25-storey Acer and 45-storey Fernley forming the first two phases of the development. Both buildings are now operational, demonstrating the scale of demand for professionally managed, amenity-led rental accommodation in Manchester.
Designed by Manchester-based SimpsonHaugh Architects, Square Gardens represents a substantial addition to the city’s evolving residential landscape. The wider £400 million development has been conceived as a new urban neighbourhood combining high-density living with extensive shared amenities, landscaped spaces and public realm.
Residents have access to facilities including a gym and wellness centre, co-working and meeting areas, social lounges, private dining spaces and extensive landscaped gardens and terraces.
Sustainability has also formed an important part of the development, with measures including air source heat pumps, while the scheme has targeted BREEAM Excellent and EPC A ratings.
The refinancing represents an important financial milestone following the completion and occupation of the two buildings. Savills Capital Advisors advised Downing on the transaction.
Bay Downing, joint chief executive of Downing, described the deal as a landmark transaction for the business, highlighting the strength of the company’s portfolio and growing opportunities across the living sector.
The deal is also significant for the wider UK residential market. Large-scale co-living and Build to Rent developments are becoming an increasingly established component of regeneration in major regional cities, combining new housing supply with extensive shared facilities and professionally managed environments.
Square Gardens has been created using Downing’s vertically integrated approach, with development, construction and ongoing management delivered by the business. This has enabled the company to take the scheme from construction through to operation within the wider group.
With Acer and The Fernley now completed and backed by £249.2 million of refinancing, Square Gardens is moving firmly from major construction project to established residential destination, reinforcing Manchester’s position as one of the UK’s leading markets for large-scale rental and co-living development.
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