LaSalle Investment Management has provided the Apache Capital Partners and Moda Living joint venture with a £96m (€112.5m) loan to help fund a UK build-to-rent (BTR) scheme.
Apache Capital said the debt facility from LaSalle will be used to fund the New York Square development, a £150m 515-apartment scheme in Leeds city centre.
The scheme is one of seven that sits in the multifamily housing platform created by Apache Capital with Harrison Street Real Estate and NFU Mutual.
Apache Capital said the four-year development loan from LaSalle is the firm’s fourth debt financing deal with Apache Capital, bringing the total sum lent across Apache Capital’s different investment platforms to over £250m.
John Dunkerley, co-founder and CEO at Apache Capital said: “With equity commitments from Harrison Street and NFU Mutual our multifamily housing platform remains the UK’s largest privately funded.”
Dunkerley said these developments are long-term investments that sit perfectly within the company’s build-to-core strategy.
“We expect lenders to increase their exposure to BTR as a demographically and structurally supported asset class with defensive, counter-cyclical qualities.”
Johnny Caddick, managing director at Moda Living and director at Caddick Group, said: “Given the current political climate it is important that people share in the confidence we have in the UK BTR market.
“The regions provide a great opportunity for growth and we are continuing to expand our platform. LaSalle have been a fantastic partner to work with on multiple Moda projects and we are excited about future opportunities and our long-term working relationship with them.”
Daniel Pottorff, managing director of debt investments and special situations at LaSalle: “This is our fourth debt financing deal with Apache Capital Partners, having lent across their multifamily, purpose-built student accommodation and later living platforms.
“New York Square will set new benchmarks in the Leeds market and we are pleased to support its development.”
