Real estate investment firm Apache Capital Partners has secured a £96 mln (€113 mln) debt facility from LaSalle Investment Management to fund a £150 mln city centre build-to-rent (BTR) development as part of their joint venture with Moda Living.
The 515-home scheme, named New York Square, is one of seven that sits in the multifamily housing platform created by Apache Capital with Harrison Street Real Estate and NFU Mutual. Two of the other schemes in the platform, which is the UK’s largest privately funded, are already under construction.
'We are committed to delivering and delighted to have partnered with LaSalle on a second Moda Living scheme. These developments are long-term investments that sit perfectly within our build-to-core strategy,' said John Dunkerley, co-founder and CEO at Apache Capital.
'We expect lenders to increase their exposure to BTR as a demographically and structurally supported asset class with defensive, countercyclical qualities,' Dunkerley added.
The four-year development loan from LaSalle will mature in mid-2023 and will fund the construction and stabilisation of New York Square. The deal marks LaSalle's biggest UK BTR development loan to date and is the firm’s the fourth debt financing deal with Apache Capital, bringing the total sum lent across Apache Capital’s different investment platforms to over £250 mln.
New York Square is part of the first phase of Caddick Group's £300 mln SOYO neighbourhood, which will include a new hotel, bars, restaurants, further residential, a multi-storey car park as well as public realm and open green space. Caddick Construction has been appointed as main contractor on New York Square, having also built Apache Capital and Moda’s flagship Angel Gardens scheme.
With Moda, Apache now has a £2 bn development pipeline of over 7,500 BTR apartments in nine cities across England and Scotland.
Apache Capital is reinvesting the funds from the disposal of its PBSA assets into its multifamily platform. In March this year, Apache Capital sold a 458-bed scheme in east London to Greystar, Allianz Real Estate and PSP Investments for over £160m and setting a record yield.
