Invesco and Alumno to develop Manchester PBSA

Invesco Real Estate has acquired a development site to deliver a PBSA scheme in partnership with developer Alumno.

Moss Lane East view of the Manchester PBSA scheme. Invesco Real Estate has acquired the site to develop the scheme in partnership with Alumno | PBSA News
Moss Lane East view of the Manchester PBSA scheme. Invesco Real Estate has acquired the site to develop the scheme in partnership with Alumno.

Invesco Real Estate, the $90bn global real estate investment business of Invesco Ltd, is to develop a 261 bed purpose-built student accommodation (PBSA) asset in Manchester with student accommodation developer, Alumno. Invesco Real Estate was advised on this transaction by Lewis & Partners.

Set to complete in Q3 2026, the development site has been acquired on behalf of Invesco Real Estate Europe Fund III – SCSp (Europe III), the third European value-add strategy in succession for the firm.

“Market repricing and the temporary retreat of core capital have combined to open up a number of attractive opportunities around Europe in sectors with positive tailwinds such as PBSA. We expect Europe III to be active in this sector as well as others where the risk/return balance has moved in favour of value-add investors who are prepared to move with speed and conviction.”

Kevin Grundy, Managing Director – Fund Management, Europe, Invesco Real Estate

The Manchester PBSA site is under a ten-minute walk from the centre of the University of Manchester campus and a 15-minute walk from Manchester Metropolitan University. 

Full-time student numbers in Manchester have increased by 14% in the five-year period since 2017/18, and the city’s student accommodation market remains fundamentally undersupplied.

Of the 74,666 full-time students studying in Manchester, only around 40% can be offered accommodation by their respective universities or are able to lease a room in a private direct let PBSA scheme, according to Knight Frank research as of 31 December 2023.

“The UK’s PBSA market continues to offer strong investment opportunities, particularly in critically underserved cities such as Manchester. We are delighted to have secured this well-located site and look forward to working with Alumno to deliver a high quality product to the market, which will ultimately create value for our investors.”

Rob Johnston, Managing Director, Head of Investments, UK & Nordics, Invesco Real Estate

The 50,000 sq ft property will deliver 207 cluster beds, of which 52 will be affordable, and 54 studios. The project is targeting both an EPC A rating and BREEAM Excellent.

Among other features, hot water will be generated via air source heat pumps while 74 cycle spaces will be made available, in accordance with BREEAM standards.

Alumno are looking forward to their second development in Manchester.

“It is a significant step and highlight for the company to be working on this exciting project, with such an established and well regarded  global investment leader,  such as Invesco Real Estate. We are looking forward to progressing the project with the Invesco team and delivering a first-class building, our second in Manchester.” 

David Campbell, Founder and Managing Director, Alumno

Developer Alumno has delivered over 9,000 PBSA beds since 2006 and has gained significant market share by specialising in creating high-quality, tenant-centric accommodation. 

Recently Alumno completed Pershore Junction – a ‘best-in-class’ Birmingham PBSA development. The scheme is a new 167 PBSA building in the heart of Birmingham.

Alumno is a strong advocate of enriching the surrounding areas of all its student developments to ensure there are opportunities to integrate the arts using local creative talent.

At Pershore Junction they worked with local artists to deliver a poetry installation from Birmingham’s former poet laureate, Casey Bailey. Additionally, they hosted a local student photography exhibition.