Manchester’s Square Gardens Backed by £249m Bank of Ireland Deal 2026

Key Points

• Downing has obtained £249.2 million in financing for two residential blocks within the company’s Square Gardens development in Manchester.
• The Bank of Ireland granted the loan facilities on the basis of the already built and occupied Acer and Fernley towers, which offer 1,862 units in total.
• The 25-story Acer and 45-story Fernley towers are the first and second phases of the larger Square Gardens project in the First Street area.
• According to Savills Capital Advisors, who advised Downing on this deal, Bay Downing, joint chief executive of Downing, said that the financing is a “landmark” deal.
• The financing highlights increasing lenders’ confidence in co-living and private rented sector (PRS) projects in regional UK cities.

Manchester (Manchester Mirror) September 07, 2026 – Downing has completed a £249.2 million refinancing of its Square Gardens development in Manchester, covering the two completed co‑living towers, Acer and The Fernley, within the wider £400 million mixed‑use living scheme. The financing, arranged and underwritten by Bank of Ireland’s property finance group, is secured against the 1,862‑unit asset and marks a transition from construction to a stabilised, income‑producing residential destination.

As reported by Dan Whelan of Place North West, Bay Downing, joint chief executive of Downing, said: “The transaction reflects the strength of our portfolio, our team, and the growing opportunities within the living sector.” He added that the company was “excited about the next phase of growth” and thanked Bank of Ireland and Savills Capital Advisors for their roles in the deal.

Who are the key parties behind the Square Gardens refinance deal?

Downing, a Liverpool‑headquartered developer and manager with more than 35 years’ experience in city‑centre residential and student accommodation, is the sponsor and asset manager for Square Gardens. Bank of Ireland acted as sole arranger and underwriter of the £249.2 million loan facilities through its UK commercial real estate finance team.

Savills Capital Advisors provided debt advisory to Downing throughout the refinancing process. The towers were designed by SimpsonHaugh Architects, Downing’s long‑standing design partner on the wider Square Gardens masterplan.

Phil Edwards, head of property finance at Bank of Ireland, said:

“This transaction marks a significant strategic milestone for the bank, demonstrating the continued evolution of its property finance franchise and its growing capability in underwriting and syndicated lending within the UK CRE market.”

What does the Square Gardens development include?

Square Gardens is a £400 million development in Manchester’s First Street district, conceived as a new urban neighbourhood combining high‑density living with extensive shared amenities and public realm. The first two phases comprise the 25‑storey Acer tower and the 45‑storey Fernley tower, which together deliver 1,862 beds across private rented sector (PRS), purpose‑built student accommodation (PBSA) and co‑living uses.

Residents have access to on‑site facilities including a gym and wellness centre, co‑working and meeting areas, social lounges, private dining spaces and extensive landscaped gardens and terraces. Sustainability measures include air source heat pumps, with the scheme targeting BREEAM Excellent and EPC A ratings.

Downing announced last September that the scheme was fully let to residents from more than 60 countries, underlining demand for professionally managed, amenity‑led rental accommodation in central Manchester.

Why does this refinancing matter for Manchester’s housing market?

The refinancing is significant because it confirms that mainstream institutional lenders are willing to refinance completed co‑living assets at scale, a model that was previously regarded as less proven than traditional buy‑to‑let or PBSA. As reported by Building of the Year, the deal “matters to building and architecture professionals because it confirms institutional lenders are now willing to refinance completed co‑living assets at scale”.

The timing also follows other recent co‑living financings in London, including a £78 million debt package secured in January for the City of London’s first purpose‑built co‑living scheme, indicating that lender appetite is extending beyond the capital into regional cities such as Manchester. BDC Magazine noted that with Acer and The Fernley now completed and backed by £249.2 million of refinancing, Square Gardens is “moving firmly from major construction project to established residential destination”.

Place North West highlighted that the transaction demonstrates debt market appetite and viability for large‑scale residential schemes in regional UK cities. For architects and contractors, completed and fully let assets like Square Gardens can now be cited as refinancing precedent when lenders assess the next wave of co‑living developments in the pipeline.

How was the £249.2m financing structured and advised?

The consideration was disclosed at £249.2 million in loan facilities provided by Bank of Ireland against the 1,862‑unit scheme. Bank of Ireland Corporate and Commercial acted as sole arranger and underwriter, supporting two newly delivered, fully operational PRS/PBSA/co‑living amenities in central Manchester.

Savills Debt Advisory successfully advised Downing on the refinancing of Square Gardens, which comprises Acer and The Fernley with elements of both PBSA and build‑to‑rent (BTR) accommodation. The structure reflects a shift towards more standardised underwriting for stabilised co‑living assets, with lenders focusing on occupancy, rental income and professional management rather than treating the sector as niche.

What have Downing and Bank of Ireland said about the transaction?

Bay Downing, joint chief executive of Downing, described the deal as a “landmark” transaction for the business. In comments reported by Place North West, he said:

“The transaction reflects the strength of our portfolio, our team, and the growing opportunities within the living sector.”

Phil Edwards of Bank of Ireland said the successful delivery of the refinancing “reflects the strength, expertise and collaboration of specialist teams across the Bank, and underlines our commitment to supporting high‑quality sponsors and sector‑leading assets”. Bank of Ireland has stated it is proud to support Downing as sole arranger/underwriter of the £249.2 million facilities for the Acer and Fernley assets.

Background: How did Square Gardens reach this refinancing stage?

Square Gardens was conceived as a multi‑phase, vertically integrated project, with Downing handling development, construction and ongoing management within the wider group. The wider £400 million scheme was designed to create a new neighbourhood in the First Street area, combining high‑density housing with shared amenities and public spaces.

Acer and Fernley, designed by SimpsonHaugh Architects, were delivered as the first two phases and confirmed fully let last September to residents from more than 60 countries. The completion and stabilisation of these towers enabled Downing to approach lenders with an operational, income‑producing asset, leading to the £249.2 million refinancing package from Bank of Ireland. The deal follows a broader trend in which co‑living development pipelines have grown significantly, with lenders increasingly treating the sector as a financeable asset class.

Prediction: How could this development affect Manchester renters and investors?

For Manchester renters, the refinancing underlines the city’s trajectory towards more professionally managed, amenity‑rich rental housing in central locations. With 1,862 units already operational and financed at scale, the Square Gardens model may encourage similar PRS and co‑living schemes, potentially increasing supply of high‑specification rental homes and reinforcing Manchester’s position as a leading regional market for large‑scale rental development.

For investors and developers, the transaction provides a clear precedent that completed, fully let co‑living assets in regional cities can attract substantial institutional debt. This may lower perceived risk for future schemes, support more competitive financing terms and encourage further capital allocation to Manchester’s living sector. Over time, this could deepen the city’s PRS and co‑living pipeline, shaping long‑term rental supply, tenant expectations and the profile of new residential projects in the city centre.