Invesco Real Estate announces £73.8m forward funding for purpose-built rental development in Milton Keynes
Invesco Real Estate (Invesco), the global real estate investment manager, announced today it has agreed to forward-fund Aubrey Place, a purpose-built BtR development in Milton Keynes’s Central Business District (CBD) for a total investment of £73.8M.
The project is being developed by Packaged Living, a developer and operator with an established track record delivering best-in-class BtR assets across the UK market, and is due for delivery in Q2 2022. The investment has been made on behalf of Invesco Real Estate’s UK Residential programme. Knight Frank and Shoosmiths advised Packaged Living on the purchase of the site.
“Adding Aubrey Place to our growing UK residential portfolio is ideal, thanks to Milton Keynes’s positive market outlook, growing reputation as a business destination and positive rental growth prospects,” said John German, Managing Director, Residential Investments at Invesco. “This asset is tailored to the local rental market and we expect it to attract young, highly educated and career-driven residents. There is strong tenant demand for BtR in this location, given limited availability of good quality residential development in the immediate area.”
The BtR scheme is situated in a prime location within Milton Keynes’s central business and retail district, one of the fastest-growing and most productive regions in the UK, and is particularly centred around high-tech and service-based employment. Being located within the Oxford-Cambridge Innovation Corridor, Milton Keynes ranks as one of the top 10 cities in the UK for research and innovation. It hosts a number of high technology businesses as well as several FTSE 100 companies, start-ups and SMEs.
Aubrey Place benefits from excellent public transport links, being closely connected to the national motorway system and only 10 minute walk from Milton Keynes Central rail station, which provides direct access to both London (35 minutes) and Birmingham (60 minutes). The incoming East West rail link between Oxford and Cambridge is set to further open up the area, easing pressure on local roads and attracting significant investment into the station and surrounding area.
Mark Woodrow, Managing Director of Packaged Living commented ”We are delighted to be working with Invesco on our latest development. Aubrey Place is an important city centre scheme delivering good quality homes for rent”.
The Hub, a mixed-use retail and residential development, and Milton Keynes Shopping Centre, the 14th largest shopping complex in the UK, are adjacent to the building. Proximity to the site of a new “21st Century” STEM university (branded as MK:U), may also provide opportunities to attract students, academics and other university staff as tenants.
When complete, the development, which includes two interlinked towers of 17 storeys above ground, connected by an 11 storey link, will comprise 294 BtR units arranged as one, two and three-bedroom apartments. Additionally, the building will benefit from 83 car parking spaces, 294 cycle storage facilities, a single commercial unit of 2,500 sqm and 17,324 sqm of internal and external amenity space, ranging from ground floor reception and lounge, to roof terraces, parcel storage and two compact landscaped courtyards.
Packaged Living is experienced BtR developer and operator with a delivery pipeline of over 1,000 homes nationwide.The contractor is Winvic, a privately-owned, multi-disciplinary contractor who has established a reputation for delivering major construction projects throughout the UK.