Sun Capital Assets, a wholly owned subsidiary of Singapore-listed Metro Holdings Limited (Metro), has entered into a sale and purchase agreement with UK-based property developer Scarborough Group International to acquire an additional 25% stake in Fairbriar Real Estate Limited (Fairbriar) for £18.0 million ($31.0 million). The investment was funded through a combination of internal cash resources and bank borrowings.

The acquisition brings Metro’s effective interest in Fairbriar to 50% with Scarborough Group International owning the remaining 50% stake. Metro made its initial acquisition of 25% into Fairbriar in July 2014 to deepen its investment presence in the UK. Fairbriar owns and develops Middlewood Locks, a mixed-use residential project in Manchester.

“We have deepened our presence in the UK, one of our key markets, by strategically increasing our stake in our joint venture projects in Manchester,” said Yip Hoong Mun, Metro group CEO.

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Middlewood Locks has an estimated total gross floor area (GFA) of around 3 million sq ft and a gross development value of
approximately £1 billion ($1.71 billion). It is expected to yield 2,215 new homes and an additional 1 million sq ft of commercial space, including offices, a hotel, retail shops and restaurants.

Kevin McCabe, Scarborough Group international chairman, said, “the move represents great confidence in Manchester, and indeed the UK, as a high performing investment opportunity for international operators. We are delighted to continue our close partnership with Metro, securing the future of this important regeneration project.”

Metro and the Scarborough Group had previously collaborated on a 50:50 joint venture (JV) in the UK office segment. The JV partners developed two Grade-A office buildings, named Acero Works and Endeavour, at the Sheffield Digital Campus in the Sheffield City Centre. Both towers have since been completed. Acero Works was sold in May 2018 and Endeavour is currently tenanted to British Telecom on a 15-year lease.