Specialist real estate finance provider Maslow Capital has successfully completed a substantial £136.8 million refinancing package for two prominent residential towers situated at the vibrant Circle Square development in Manchester. The high-profile facility is secured against the North and East Towers, which occupy a prime position along the city’s bustling Oxford Road corridor.
This financial agreement marks a significant milestone for the development, enabling the Vita Group to clear its existing debt obligations and simultaneously acquire its joint venture partner’s financial interest in both buildings. By executing this buyout, Vita Group brings the landmark residential towers into its full and exclusive ownership. Beyond facilitating the ownership consolidation, the newly secured refinancing arrangement provides robust commercial support for the ongoing, phased retail sales programme encompassing 487 completed and fully let apartments, alongside 14 ground-floor commercial units.
Income-Producing Asset Strategy and Market Demand
In the wake of the refinancing deal, Vita Group is actively progressing with the phased sale of the apartments. Each residence is being marketed as a furnished, income-producing investment opportunity. According to the developer, this offering has triggered strong residential investment demand from a diverse pool of both domestic UK buyers and international investors.
The residential towers have been designed to offer a premium lifestyle, featuring an array of high-end amenities that appeal to contemporary urban renters and buyers alike. Residents benefit from comprehensive facilities, including round-the-clock concierge services, private dining rooms, a dedicated cinema room, and expansive communal lounges. Furthermore, the North Tower offers residents exclusive access to an on-site gymnasium and modern co-working spaces, reflecting the shifting demands of modern city-centre professionals.
Market observers note that this transaction illustrates an increasingly popular financing strategy tailored for completed residential schemes that require sophisticated capital solutions bridging the critical period between practical completion and the final realization of unit sales. With prevailing rental yields remaining notably attractive for landlord investors looking to expand or stabilize their portfolios, the structured facility allows steady ongoing rental income to efficiently service the underlying debt while the broader sales programme continues to unfold at a measured pace.
Matt Pigram, senior director of origination at Maslow Capital, emphasized the strategic alignment of the project and the financing structure. “Circle Square is a completed, income-producing asset in one of Manchester’s strongest city-centre locations, with a unit sales programme that was already well progressed,” Pigram stated. “The facility gives Vita the flexibility to refinance, take full ownership of the towers and continue executing its strategy for the assets, with rental income servicing the debt in the meantime.”
Circle Square Development and Strategic Location
The North and East Towers are situated on historical ground, occupying a portion of the former BBC site along Oxford Road. They form an integral part of a broader, master-planned mixed-use neighborhood that seamlessly combines high-density residential living with Grade A office space, vibrant retail outlets, leisure facilities, and carefully curated public realm areas, including the popular Symphony Park. Construction of the North and East Towers was expertly handled by renowned contractor John Sisk & Son, with the buildings successfully achieving practical completion back in 2021.
Geographically, the development enjoys an enviable position within the city. It sits comfortably within easy walking distance of major academic institutions, including the University of Manchester and Manchester Metropolitan University, as well as Manchester’s thriving central business district. For regional and national connectivity, Oxford Road railway station is located a mere one-minute walk away, making the towers exceptionally accessible for students, academics, and city professionals.
Detailing the mechanics of the transaction, Daniel Murray, senior director of short-term finance at Maslow Capital, pointed out the specific market niche that the funding addresses. “Large completed residential schemes increasingly need funding that bridges the period between practical completion and the sale of the final units,” Murray explained. “That is exactly what our short-term finance offering is designed to do.”
Echoing these sentiments, Peter Shipley, finance director at Vita Group, highlighted the long-term vision behind bringing the assets under single ownership. “Bringing the North and East Towers into full Vita ownership was a natural opportunity for us given our long-standing history with Circle Square,” Shipley noted. “These are established assets, and our facility with Maslow gives us the flexibility to execute the next phase of our strategy while continuing to operate the buildings as income-producing investments.”
The latest transaction adds to Maslow Capital’s growing footprint in the Manchester property market, having previously financed other notable developments in the city, such as Select Properties’ Port Street and City Suites 2 schemes. Meanwhile, Vita Group continues to build its reputation as a leading developer and operator of purpose-built student accommodation and residential assets spanning markets across the United Kingdom and continental Europe.
