Apache Capital Partners, the property investment management firm, and joint venture partner Moda Living have agreed senior debt financing of £85m secured on Angel Gardens, Manchester.
The facility, agreed with Deutsche Pfandbriefbank, has a four-year term to fund the construction period, 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.
The 34-storey, 466 apartment premium private rented sector (PRS) accommodation scheme in the heart of Manchester city centre will be one of the biggest UK residential towers to be built outside London since the financial crisis.
As a central part of the wider NOMA redevelopment masterplan, which is a 20-acre mixed-use strategic regeneration project opposite Manchester Victoria, the £153m Angel Gardens development covers 520,000 sq ft.
Angel Gardens will be the first PRS scheme delivered by Apache Capital’s joint venture with Moda Living. The joint venture, created in May 2015, has a £1bn premium PRS development pipeline comprising 5,000 homes for rent, located in eight city centre sites across the UK regional cities and the south east including London.
Richard Jackson, co-founder and managing director of Apache Capital Partners, said: “We saw strong and growing appetite from international and domestic banks, institutions and insurers and are pleased to have secured this new £85m debt financing from Deutsche Pfandbriefbank. This offers Apache Capital funding diversification as well as the potential for future financing with pbb as we deliver on our secured £1bn GDV pipeline of 5,000 premium PRS homes.”
Johnny Caddick, managing director at Moda Living, believes the project will “set new expectations for rental housing in Manchester and throughout the UK”.
Charles Balch, head of real estate finance international clients at Deutsche Pfandbriefbank, added: “We are delighted to have closed this landmark transaction with the Apache and Moda teams. Well-located developments managed by experienced teams in main regional centres remain an appealing asset class and fit well within our prudent lending strategy.”
Apache were advised by Savills Corporate Finance and CBRE.