London-based residential development lender Maslow Capital has provided a £18 million (€20 million) loan to UK contractor and developer Linear Group for its Trafford Gardens, formerly Botanical Gardens, scheme in Manchester.
The 24-month facility will support the development of a residential project comprising 116 state-of-the-art apartments within Old Trafford, Manchester. The loan is Maslow’s first to Linear Group and comes after the previous developer, Investar, went into administration.
“Linear Group, being the original contractor, has now purchased the site from the developer that went into administration, enabling the completion of the scheme,” Sky Mapson, director of deal origination at Maslow Capital, told Real Estate Capital Europe.
“Maslow were not the original funder, but we have stepped in to assist with the purchase and development,” he added.
Investar fell into administration in 2022 after missing loan repayments from a 2021 facility provided by London-based Shawbrook Bank. It is understood that Shawbrook provided a land bridge loan. Linear has since renamed the project Trafford Gardens.
In addition to 116 homes, the project will also provide 3,450 square feet of commercial office space, which Mapson believes will be important for the city’s broader growth.
“Manchester has experienced a population surge, boasting a remarkable growth rate of 9.7 percent over the past decade. By 2025, the city is anticipated to welcome an additional 35,000 residents, spurred by economic advancements, a thriving academic scene, and an expanding city centre,” Mapson said.
He continued: “However, the housing supply has not kept pace with this demand, underscoring the need for modern residential developments like Trafford Gardens. Linear Group are a proven contractor with strong ESG credentials. We are confident that they will be able to complete this project, which will benefit the local housing supply, create jobs and ensure the project can be completed.”
Maslow has originated 24 loans in North West England, which has resulted in the development of over £1.2 billion worth of real estate projects in the region.