Legal & General Investment Management (LGIM) has refinanced Gatehouse Investment Management and the Kuwait Investment Authority’s UK private rented sector (PRS) real estate venture with a £78m (€91m) loan.
LGIM’s UK and European real estate finance arm has provided the refinancing of the portfolio of 750 homes located across nine sites and also to help with the “implementation of environmental performance improvements” of the portfolio’s existing stock.
Gatehouse IM said the capital also provides the headroom to expand the platform if suitable opportunities arise.
Patrick Sweeney, investment manager at LGIM’s real assets division, said: “This transaction marks the beginning of a relationship-led journey with an experienced management team. We look forward to exploring further deployment opportunities with Gatehouse IM and the Kuwait Investment Authority in the single-family rental sector.
“Despite the wider macroeconomic backdrop and volatility in financial markets our property expertise, experience in the real estate financing market and flexible debt structuring capability allows us to be active and competitive. We take a longer-term sustainable view on property and loan performance with an appropriate risk-based approach.”
Florian Graham-Watson, the head of structuring at Gatehouse IM, said: “We are hugely pleased to have secured this refinancing facility from LGIM, which will not only underpin the targeted expansion of the platform but also enable our ongoing work to improve the sustainability of the properties.
“The success of UK PRS since its launch has demonstrated the opportunities presented by single-family BTR, and we’re excited to be moving into a new, acquisitive phase for the platform.”
Gatehouse IM and the Kuwait Investment Authority launched the UK PRS venture in 2015. The platform, which operates under the DifRent brand, has homes located across nine sites in Greater Manchester, Merseyside and the West Midlands.
To read the latest edition of the latest IPE Real Assets magazine click here.