Investec Real Estate’s UK residential investment fund has provided Edmond de Rothschild Real Estate Investment Management with a £19.3m (€21.9m) loan to help fund a build-to-rent (BTR) project.
Investec said the 39-month development loan will help fund Edmond de Rothschild’s Charolais Gardens project, a 357-unit BTR scheme in Rugby, Warwickshire due to be completed in January next year.
The loan is Investec’s first with Edmond de Rothschild, which has made the investment through its Residential Investment Fund UK. Created in 2008, the strategy focuses on the development of affordable BTR assets in UK regional cities. The fund currently holds 11 assets, with three already stabilised and income-producing.
Jonathan Long, the head of corporate real estate at Investec, said: “This transaction demonstrates our conviction in high-quality, affordably priced build-to-rent schemes that benefit from excellent transport connectivity.
“The government’s Levelling Up agenda, impact of the COVID-19 pandemic and the sector’s defensive characteristics have seen accelerated investment in, and demand for, rental homes outside of London. Establishing new relationships with high-quality counterparties such as Edmond de Rothschild is a key part of our growth strategy and we look forward building a long-term partnership.”
James Whidborne, the head of fund management residential UK at Edmond de Rothschild, said: “This transaction is further evidence of the appetite for regional build-to-rent from a variety of both equity and debt providers.”
According to Whidborne, affordable UK residential is one of the firm’s strongest convictions.
”We hope this is the start of a strong relationship with Investec as we continue to grow our platform and create and launch a series of products investing in this space,” Whidborne said.
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