The 500-home development will form the foundation of Patrizia’s plans for a dedicated PRS fund, building on its significant European track record in the sector, which already includes the management of 80,000 apartments worth €7bn.

The firm today announced it had bought the 20-acre First Street site, which includes a half-built 180,000 building, to further develop offices and residential on the remainder of the site over the next 5-7 years.

Carillion is working on this first £32m North Phase building which includes a four-star hotel, multi-storey car park and retail block, under a contract struck with previous owner Ask Developments.

James Muir, Managing Director of Patrizia UK, said: “We have been carefully implementing our strategy of investing in high-growth locations across the UK.

“With this investment, our property assets under management in the UK now amount to more than £1bn.

“Driven by attractive economic and demographic fundamentals in Manchester, and the growing trend for urbanisation, we are anticipating strong demand for this centrally located, high-quality accommodation which will be tailored to the private rental sector.

“Together with the new commercial buildings we expect to create an attractive investment opportunity for institutional investors. We see this project as an ideal first investment for our planned Patrizia UK PRS Fund.”