Agreed over a four-year term, the facility will allow Downing to deliver the units — ranging from studio apartments to five-bedroom shared accommodation — across three buildings in the city centre, aimed at young professionals and new graduates.

The project includes plans for several sustainability features, including air source heat pumps, EV charging points, and rooftop solar panels.

Downing Living is implementing a strategy for the asset to be net zero by 2038, depending on the extent of grid decarbonisation and connection to the Civic Quarter Heat Network.

The first phase of the scheme is set to be completed in August 2024, with phase two scheduled for delivery in March 2025.

This is the first loan completed by Precede Capital since it rebranded from Precis Capital Partners after QuadReal acquired a shareholding in the firm.

•   Hilltop launches real estate funding and management platform
•   Précis Capital Partners agrees £1bn partnership with QuadReal
•   Precis, Carlyle and Apollo provide £251m facility for Moda Living's London BTR scheme

It brings the total value of residential development loans completed by the firm to more than £1.5bn, and marks Precede Capital’s first loan in the north of England.

David Jerrard, chief credit officer at Precede Capital, said: “We are delighted to have closed this financing for a high-quality asset and to have provided the Downing Living team with the certainty and backing required to deliver an important project that will help meet the sustained demand for co-living schemes in this market.

“We are also particularly pleased to have closed our inaugural deal in the north of England, an important milestone which is testament to our team’s extensive industry relationships and our ability to identify and transact on high-calibre opportunities across the UK.”

Zhuu Ming Ang, co-head of EMEA real estate financing at Nomura, added: “We are happy to partner with Precede Capital and QuadReal Property Group to finance the Downing Living development.

“This will help address the significant undersupply of residential units in the city of Manchester, especially for underserved single households.”