NatWest and the UK-based subsidiary of Israel's largest bank Leumi have agreed the first £150 mln (€178 mln) of debt for a £1 bn, 3000-home build-to-rent JV between EQT Exeter and Sigma Capital Group.
The first four planned developments will be located in Barking, Walthamstow and Enfield.
In September 2020, EQT Exeter (formerly EQT Real Estate) the real estate arm of global investment organisation, EQT, and Sigma Capital Group, a residential development and urban regeneration specialist, launched a new joint venture to build high-quality, well-located apartment blocks and houses in more affordable parts of Greater London and its commuter towns.
The project, named “Saturn”, delivers buildings with strong sustainability credentials and has an initial capacity for an investment portfolio of approximately 3,000 homes, with a total value of over £1 bn.
NatWest’s Structured Real Estate Finance team arranged a £150 mlnscalable debt package supporting the current Saturn portfolio and future development pipeline.
The funding comprises an Investment Facility of £120 mln and a Revolving Development Facility of £30 mln.
Lee Franklin, structured Real Estate Finance director at NatWest, commented: 'The team is delighted to support two NatWest customers with a debt financing package that will help deliver much-needed homes across Greater London. We are looking forward to continuing our relationship with EQT Exeter and Sigma Capital as they deliver positive change with a sustainable agenda.'
Gez O’Sullivan, Property Finance Relationship manager at Leumi UK, said: 'The Leumi UK Property Finance book is growing, and we are thrilled to be able to facilitate this growth with high calibre, new-to-bank customers in the form of EQT Exeter and Sigma Capital. They both have a fantastic reputation and their JV strategy for providing sustainable and affordable homes aligns with our own ambitions in the market.'
