Swiss Life buys £74m Duet development in Salford

Swiss Life Asset Managers and its subsidiary Mayfair Capital have acquired their first residential investment in the United Kingdom by purchasing the Duet development in Salford Quays for £73.85 million on behalf of an open-ended fund distributed exclusively by DEKA Immobilien in Germany.

The seller was the Moorfield Real Estate Fund IV managed by Moorfield Group.

Duet, developed and operated by the Moorfield Group under its “More” brand, was opened in 2019 and comprises 270 one, two and three-room apartments.

Duet is close to MediaCity, the media, digital and technology centre anchored by the BBC, which is expected to double in size over the next decade.

Significant investments have been made in the site in recent months, including Landsec’s acquisition of 75% of Media City’s shares in November.

Jos Seligman, Transaction and Fund Manager at Mayfair Capital Investment Management, said: “Having created the conditions to expand Swiss Life Asset Managers’ residential real estate investments in the United Kingdom, this purchase is the first of several planned acquisitions.

“Duet is an excellent fit for our thematic focus on high quality modern residential developments which are designed for rental, meet our high ESG standards and provide an attractive demographic profile.

“As a long-term owner, we will work with JLL as managing agent and the experienced on-site team to maintain the high level of service residents already receive.”

Christine Bernhofer, CEO of Swiss Life Kapitalverwaltungsgesellschaft and COO of Swiss Life Asset Managers in Germany, said: “This transaction represents a perfect start in the UK market, which provides further diversification for our fund.”

Ross Netherway, Head of Origination at Moorfield Group, said: “We are proud to have developed Duet together with Glenbrook. The project set a new standard for residential properties in Salford Quays.

“This transaction is our third successful sale of a fully stabilised residential property in the past year and is in line with our value creation strategy.

“We have recently achieved a first close of MREFV, our fifth value-add fund, which will continue to invest in sectors supported by structural drivers such as demographics, societal shifts and technological disruption.

“In the residential sector we have added investing in single-family housing and houses in multiple occupation to supplement our successful track record in city centre Build to Rent apartments, purpose-built student accommodation and senior housing.”

CMS and JLL acted for Swiss Life and Mayfair Capital. Knight Frank and Shoosmiths acted for Moorfield.