Private Equity Partnership Launches $250 Million Housing Fund for Northern England

2026-08-14 economy

Manchester, Thursday, 13 August 2026.
On August 12, 2026, Canadian private equity firm AND Capital Ventures partnered with UK developer Forshaw to establish a $250 million fund aimed at residential projects across Northern England. The initiative directly addresses funding shortages faced by regional developers while capitalizing on Manchester’s rapidly growing economy.

Fund Structure and Capital Commitments

The newly formed investment vehicle is structured as a closed-ended fund valued at up to $250 million, equivalent to approximately £185 million [1][3]. While the announcement was publicized on August 13, 2026, the foundational Letter of Intent was signed by AND Capital Ventures and Forshaw Land & Property Group on August 12, 2026 [1][2]. This capital injection is designed to target residential-led development, build-to-sell schemes, and private rented sector (PRS) opportunities across the North of England [4][5]. The partnership aims to capitalize on markets characterized by structural housing undersupply and regeneration-driven demand, with Manchester identified as a primary focal point for deployment [1][5].

Negotiations for a definitive closed-ended fund structure are expected to continue over the coming months, subject to due diligence and documentation completion [1][5]. The fund is domiciled to serve both UK and international institutional investors, marking a significant influx of foreign direct investment into the region’s property sector [5][6]. This timeline indicates that while the commitment is immediate, the full deployment of capital will occur throughout late 2026 and into 2027 [alert! ‘specific deployment dates not provided in sources’].

Operational Roles and Strategic Division

Under the terms of the partnership, responsibilities are clearly divided to leverage the specific strengths of each entity. Forshaw Land & Property Group will lead pipeline generation, site origination, development execution, and asset-level delivery [1][4]. This vertically integrated approach allows the Bolton-based developer to manage everything from construction to post-completion property management, utilizing their nearly 20-year track record in the region [2][5]. AND Capital Ventures, a Canadian multi-fund private equity platform, will lead fund formation, institutional capital raising, and investor relations [3][6].

Both firms will share management and performance fees, aligning their financial incentives with the success of the developments [1]. David Chung, Head of Capital Formation at AND Capital Ventures, noted that pairing Forshaw’s operating discipline with a dedicated institutional capital vehicle provides a competitive edge in one of Europe’s sought-after regional markets [4][5]. This structure addresses a critical bottleneck for small and medium-sized enterprises (SMEs) in the sector, where access to funding often constrains growth despite strong operational performance [2][5].

Regional Economic Impact and Future Outlook

The initiative arrives as Manchester exhibits economic momentum comparable to a capital city, attracting sustained institutional demand and a regeneration pipeline measured in billions [2][4]. Lyndon Forshaw, CEO of Forshaw Land & Property Group, described the partnership as a transformational moment that will allow the firm to increase the scale and number of projects delivered [5][6]. The fund plans to expand into new asset classes, including hotel portfolios, family housing, and larger high-rise developments, diversifying the local housing stock [3][5].

Existing projects under Forshaw’s portfolio include a £64.2 million residential tower currently under construction in Manchester and the Riverside Place development in Salford, which comprises 814 apartments [2]. The broader economic implication suggests a strengthening of the Northern Powerhouse agenda through private capital mobilization, though the exact number of homes to be delivered remains unspecified at this stage [alert! ‘housing unit targets not disclosed in sources’]. Teruel Carrasco, CEO of AND Capital Ventures, emphasized that capital markets are responding to the city’s deep talent and development ecosystem [4][5].

Sources

Private Equity Real Estate Investment