Apache Capital has formed a joint venture with Harrison Street Real Estate Capital to fund the development of build-to-rent (BTR) schemes across England and Scotland.
Apache Capital said the new platform with Harrison Street - which is also being backed with additional investment from National Farmers Union Mutual Insurance Society (NFU Mutual)- intends to fund a first phase development of up to seven BTR schemes.
The new platform has closed and recently began construction on the first of these build-to-rent development schemes, The Lexington, which is located in Liverpool.
The platform intends to invest on an asset-by-asset basis as construction of the other six phase one schemes are brought forward over the next 20 months.
John Dunkerley, the co-founder and CEO of Apache Capital Partners, said: “These new equity commitments underscore that the UK’s build-to-rent sector is developing into an institutional asset class, attracting long-term global investors.
“Harrison Street has been investing in and developing student housing assets in the UK since 2015 and we look forward to partnering with them and NFU Mutual as we expand our portfolio, which we will fund and operate with long-term institutional build-to-core investors.”
Rob Mathias, a senior managing director at Harrison Street, said: “We are excited to partner with Apache Capital, a world-class class investor and leader in the premium UK build-to-rent space.
“The Liverpool BTR market is backed by strong demographics, including a large and growing population of young professionals who are not yet ready to buy a home, and the property itself is situated in a prime location.”
Tom Bostock, property investment manager at NFU Mutual, said: “We are pleased to make our first investment in build-to-rent, diversifying into a new and emerging sector in the UK.
“We identified Apache Capital as a long term partner with a unique premium portfolio that’s been carefully secured and being developed by them in partnership with Moda. Its scale, quality, differentiated offering and services, makes it stand out in the UK market.”
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