Saudi Money Is Now A Thing In Manchester Property
Middle Eastern money, much of it from Israel or the Gulf, has long been a feature of Manchester’s property market. Now a wave of Saudi finance is broadening the city’s international base as the country diversifies away from a reliance on oil and seeks higher-growth opportunities outside London.
Saudi investors think they have spotted opportunities neglected by Gulf rivals, who began to pull out of high-priced London in 2018. Together with Kuwaiti investors, they are leading what pre-pandemic analysts expected to be a £4B push into UK real estate.
Jeddah-based AIMS Investments has bought a majority holding in Manchester’s Beech Holdings, North West Business Insider reported.
Beech has been active in Ancoats and Old Trafford, and the investment will provide the Saudi investors with a residential development platform for expansion across the UK.
Beech and AIMS began working together last year. The first serious sign of growing Saudi interest in Manchester came in June 2019 with Riyadh-based Cedar Tree Investments' £39M acquisition of four Manchester city centre assets from Manchester Apartments, the property and lettings division of Beech Holdings. Cedar Tree is associated with AIMS Investments.
In a separate move, Saudi-based Majdiah Residence has decided to press ahead with the residential redevelopment of the 178K SF Meadow Mill, Stockport. The developer acquired the 200-unit site in 2018 from William George Homes, and now intends the £15M redevelopment to complete by mid-2021, PlaceNorth West reported.
Contact David Thame at david.thame@bisnow.com.
