Barings has secured a £91m (€109.3m) debt facility from Homes England, Greater Manchester Pension Fund (GMPF) and West Yorkshire Pension Fund (WYPF) to forward fund a UK residential development scheme.
The investment manager has secured the four-year loan, in addition to a £5.7m grant from the West Yorkshire Combined Authority’s brownfield housing fund, for the Kirkstall Road residential scheme in Leeds.
The scheme, which will deliver 618 one, two and three-bed apartments set across five buildings on the five-acre site, is being developed as a joint venture with residential developer Glenbrook, which will retain a stake in the project and act as development manager.
Darren Hutchinson, head of UK real estate transactions at Barings, said: “The Kirkstall Road scheme represents exactly the kind of high-quality, well-located residential investment we seek on behalf of our partners.
“With the support of Homes England, GMPF, and WYCA, and through our joint venture with Glenbrook, we are delivering a best-in-class residential scheme that will provide much-needed new homes while creating long-term value for our investors.”
CBRE acted as adviser to GMPF and WYPF on the debt facility and partnered with Homes England.
Will Church, executive director of lending at CBRE, said: “We are proud to have played a key role in bringing together this trio of lenders to deliver a significant build-to-rent scheme in Leeds. We are seeing a growing interest from pension funds to invest in local markets, in which they will play a key role in the delivery of much-needed housing.”
Nigel Barclay, director of loans at Homes England, said: “As the government’s housing and regeneration agency, we are committed to working in partnership with organisations in both the public and private sector, to achieve their ambitions and develop much-needed new homes across the country.
“The Kirkstall Road scheme is an excellent example of how the agency’s Home Building Fund is delivering in priority regeneration locations, whilst supporting small and medium house builders that are crucial to building a diverse and resilient housing sector.”
Darran Ward, head of alternatives at West Yorkshire Pension Fund, added that the fund was “proud to support this significant investment in Leeds, helping to deliver high-quality, energy-efficient homes that are much-needed in our region”.
“By working alongside our Northern LGPS partner Greater Manchester Pension Fund, and Homes England, we are demonstrating how collaboration between institutional investors and government can drive local economic growth, create jobs, and provide long-term, sustainable housing solutions. This project reflects our commitment to investing in our home market whilst ensuring returns for our members,” he added.
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