Apache Capital Partners said on Wednesday that it has secured a new four-year £58.5 mln (€66 mln) senior debt facility, with an option to extend for two years, from LaSalle Investment Management's Residential Finance III fund.
The senior loan is secured on The Lexington, a £90 mln build-to-rent development scheme Apache and its development partner Moda’s are building in the UK city of Liverpool.
Set to become the tallest residential scheme in the city, The Lexington will reach practical completion in H2 2021 and represents one of the biggest single investments into Liverpool’s property market over the past few years.
The 34-storey, 325 apartment scheme is the first BTR project launched under a new joint venture of Apache with US-based Harrison Street Real Estate Capital. The two JV partners, with additional investment from local rural insurer National Farmers Union, announced last week that they planned to invest in seven BTR schemes in the UK on an asset-by-asset basis.
Richard Jackson, co-founder and managing director of Apache Capital Partners, said: 'We secured this new £58.5 mln 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 £2 bn with 6,000 apartments.'
Dan Pottorff, managing director, debt and special situations at LaSalle IM, commented: 'This is the 11th debt investment on behalf of the programme and the 17th development facility arranged by LaSalle since 2013, underscoring our breadth of experience in the development funding market.'
LRF III is a real estate debt venture launched by LaSalle in 2017 that provides real estate debt facilities for the development of residential (for sale or for rental), student housing, hotels and healthcare property in the UK and Continental Europe on behalf of a pension fund client.
