Gresham House has secured a £22m (€25.7m) loan from specialist lender Leumi UK to fund a residential development in Northern England.

The alternative asset manager said the loan will fund the Spinners Yard development of a 185-unit build-to-rent (BTR) site in Leeds, delivered by Clegg Construction and Rise Homes, the Gresham House-backed BTR development business. It is also being supported by grant funding from West Yorkshire Combined Authority via its Brownfield Housing Fund.

The Spinners Yard development will include one, two and three-bedroom flats, and amenities including a gym, lounge area and rooftop garden.

The transaction is the second loan that Gresham House has agreed with Leumi, after previously agreeing a facility to support the 229-unit Ironworks BTR development in Sheffield, which reached practical completion in August 2023.

Joe Thomas, investment director at Gresham House, said: “This development will make a real impact, providing much-needed affordable and well-fitted rental accommodation in Leeds, so we are delighted to have agreed this loan with Leumi UK to support the Spinners Yard project. It is also fantastic to have support from West Yorkshire Combined Authority for the project.

“As interest in BTR housing from institutional investors continues to grow, we look forward to supporting further exciting projects and playing our part in addressing the challenges facing renters up and down the country.”

Gez O’Sullivan, relationship director at Leumi UK, said: “We are pleased to build on our previous experience working with Gresham House with this loan, which will support a truly impactful project in Leeds.

“Gresham House’s expertise and experience in the BTR space makes it a natural partner for Leumi, and we look forward to seeing the completion of this much-needed development.”

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