The acquisition of the additional stake comes after Metro acquired a 25% stake in Scarborough Real Estate Limited, which was subsequently renamed as Fairbriar Real Estate Limited. According to Metro, the acquisition is in the ordinary course of its business and is in line with the group’s intention to enhance its presence in the UK.
Fairbriar, through its wholly-owned subsidiary, Fairbriar Real Estate Developments Limited, owns and develops the freehold Middlewood Locks mixed-use development and Milliners Wharf Phase 2 in Manchester, the UK. Middlewood Locks is an award-winning project that is located next to the River Irwell and is within walking distance to St.Johns, Spinningfields business district and the city centre. It will provide 2,215 new homes and an additional 1,000 new homes or 1 million sq ft of commercial space. The commercial space will include offices, a hotel, shops and restaurants. The entire development has an estimated gross floor area (GFA) of 3 million sq ft and a gross development value of GBP1 billion.
Middlewood Locks is being delivered in phases. Phases 1 and 2 of the development comprises 1,117 homes and commercial space occupied by Seven Bro7hers Beer house, 92 Degrees coffee shop and Co-op groceries store. Phase 3 is a residential development comprising 189 residential units named The Railings and is expected to be completed by the end of 2024.
According to UK property firm Bidwells and Deloitte, Manchester is said to be the UK’s second economic powerhouse and continues to see strong demand for build-to-rent (BTR) and new homes. Manchester is also said to be one of the most wealthy areas in the UK with the largest BTR market outside of London.
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Metro’s CEO and executive director, Yip Hoong Mun, says the transaction “strengthens and extends [the group’s] successful decade-long partnership with the Scarborough Group”. The transaction will also enable the group to “further leverage on [Scarborough Group’s] expertise in UK real estate,” Yip adds.
Scarborough Group International chairman Kevin McCabe said he was “delighted” that Metro increased its share ownership at Middlewood Locks.
“The move represents great confidence in Manchester, and indeed the UK, as a high performing investment opportunity for international operators. We are delighted to continue our close partnership with Metro, securing the future of this important regeneration project,” he adds.
Shares in Metro closed flat at 47.5 cents on Nov 1.
