LaSalle Investment Management has extended its relationship with Apache Capital Partners with the provision of a loan to help fund a UK build-to-rent scheme.

Apache Capital said it has agreed the new four year £58.5m (€66.4m) senior debt financing with the LaSalle Residential Finance III (LRF III) fund.

The loan, which has an option to extend for two years, is secured on the 34-storey The Lexington building, Liverpool at Princes Dock.

Last week, Apache Capital has formed a joint venture with Harrison Street Real Estate Capital to fund the development of build-to-rent schemes across England and Scotland.

The new platform with Harrison Street - which is also being backed with additional investment from National Farmers Union Mutual Insurance Society - intends to fund a first phase development of up to seven BTR schemes.

Apache Capital said, together with the new equity investment, the LaSalle debt facility sees Apache Capital secure full funding for the first scheme.

Richard Jackson, the co-founder and managing director of Apache Capital Partners, said: “We secured this new £58.5m debt with LaSalle, following strong and growing appetite that we continue to see from international and domestic banks, institutions and funds for our growing build-to-rent portfolio, which is already one of the UK’s largest, worth £2bn with 6,000 apartments.”

Apache Capital and its development partner Moda’s £90m build-to-rent development scheme, The Lexington, will reach practical completion in the second half of 2021.

Dan Pottorff, the managing director of debt and special situations at LaSalle Investment Management, said: “We are pleased to support Apache Capital and the joint venture on the development of The Lexington, a landmark scheme for the Liverpool market.

“LaSalle has an established track record of lending against a diverse range of residential, student housing, hotel and healthcare properties through the LRF programme.”

This debt facility for The Lexington builds on Apache Capital’s existing relationship with LaSalle, representing the third debt financing that Apache Capital has closed with them and the third sector, with Apache having loans already secured across student accommodation and senior living.

LRF III, a real estate debt venture launched by LaSalle in 2017, provides debt facilities for the development of residential, student housing, hotels and healthcare property in the UK and Continental Europe on behalf of a pension fund client.