Apache brings in new finance through link-up with Harrison Street
Apache Capital has formed a new joint venture with Harrison Street Real Estate Capital to fund its build-to-rent developments around the country.
Along with additional investment from the National Farmers Union Mutual Insurance Society it has created a new platform that will invest in seven Apache schemes on an asset-by-asset basis.
The new platform has already began construction on the first of these, the Lexington in Liverpool (pictured above and below), with other potential assets in Birmingham, Edinburgh, Glasgow, Liverpool, Leeds and two in London.
Apache Capital has formed a new joint venture with Harrison Street Real Estate Capital to fund its build-to-rent developments around the country.
Along with additional investment from the National Farmers Union Mutual Insurance Society it has created a new platform that will invest in seven Apache schemes on an asset-by-asset basis.
The new platform has already began construction on the first of these, the Lexington in Liverpool (pictured above and below), with other potential assets in Birmingham, Edinburgh, Glasgow, Liverpool, Leeds and two in London.
[caption id="attachment_948698" align="alignnone" width="847"] The Lexington, Liverpool[/caption]
First UK PRS deal
The Lexington will be Harrison Street’s and NFU Mutual’s first UK PRS deal.
In 2015 Apache Capital and Moda created one of the largest UK PRS tie-ups, which oversees a portfolio of 6,000 homes across 10 schemes. The first of these, Angel Gardens in Manchester, will open next year. Most of the sites in this will be transferred to the new jv, though the £154m Angel Gardens will not be part of this and has been entirely funded by Apache.
The Apache/Moda tie up will continue and the pair intend to create another portfolio of equal size within the next two years.
John Dunkerley, chief executive officer of Apache Capital Partners, said: “These new equity commitments underscore that the UK’s build-to-rent sector is developing into an institutional asset class, attracting long-term global investors.
Expanding the portfolio
“Harrison Street has been investing in and developing student housing assets in the UK since 2015 and we look forward to partnering with them and NFU Mutual as we expand our portfolio, which we will fund and operate with long-term institutional build-to-core investors.”
The Apache/Moda build-to-rent portfolio has focused on prime city centre sites and premium products, generally in schemes of several hundred units.
It was one of the first to make a major push into the regions as the London market became increasingly low yielding and expensive.
Developments include the £300m, 515-home SOYO in Leeds; an 860-home site in Brighton & Hove; 433 homes at the former Police HQ I Glasgow; and a 37-storey, 450-flat tower on Birmingham’s Broad Street.
Johnny Caddick, managing director of Moda Living, said: “This funding announcement underlines the calibre of Moda’s offer and also shows how confidence in build-to-rent continues to grow.”
JLL acted for Apache Capital; Knight Frank acted for NFU Mutual.
To send feedback, e-mail alex.peace@egi.co.uk or tweet @EGAlexPeace or @estatesgazette
