Apache and Moda Living secure €100m loan for UK PRS scheme

The 34 storey, 466-apartment development will be the UK's first major residential project to be built outside of London since the global financial crisis.

'We saw strong and growing appetite from international and domestic banks, institutions and insurers and are pleased to have secured this new £85 mln debt financing from pbb Deutsche Pfandbriefbank. This offers Apache Capital funding diversification as well as the potential for future financing with pbb as we deliver on our secured £1 billion GDV pipeline of 5,000 premium PRS homes,' commented Richard Jackson, co-founder and managing director of Apache Capital Partners.

The facility includes a four-year term for construction, which will automatically convert into an investment loan for the remainder of the term. Practical completion of the building will be in two phases between 2019 and 2020.

Angel Gardens will be the first PRS scheme delivered by Apache Capital’s joint venture with Moda Living, which was launched in May 2015. The jv has to date lined up a £1 bn PRS development pipeline comprising 5,000 homes for rent, located in eight British cities including London.

As a central part of the wider NOMA redevelopment masterplan, the 20-acre mixed-use strategic regeneration project opposite Manchester Victoria, the £153 mln Angel Gardens development covers some 520,000 ft2.

'We are now delivering the first substantial PRS tower development this side of the recession in the UK regions and this financing is the culmination of many years of work in the PRS sector and on Angel Gardens. Technically delivering and financing a building of this scale early in the UK PRS cycle has had many challenges and overcoming these underlines our JV team’s in-house expertise, the superior design and specification of our landmark scheme and the quality of amenities and services we are delivering,' concluded Jackson.

Apache were advised by Savills Corporate Finance and CBRE.