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Tue November 12 2019

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Funding secured for Birmingham PRS tower

18 Apr Property investor Apache Capital Partners has secured a £118m debt facility from Goldman Sachs to construct Birmingham’s tallest residential building.

The 42-storey skyscraper at 212-223 Broad Street in Birmingham is being developed by Apache in partnership with Moda Living.

John Sisk & Son was named main contractor earlier this month

In October 2018, Apache Capital created the UK’s biggest privately-funded multifamily investment platform when it partnered with Harrison Street Real Estate and National Farmers Union Mutual to create a new platform to fund seven of its initial schemes with Moda Living.

The funding deal for the Broad Street tower is Goldman Sachs’ first UK build-to-rent development loan. The 4.5-year facility includes a 12-month extension option.

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The tower block has a gross development value of £184m and will deliver 481 apartments for the private rented sector (PRS).

Together, Apache Capital and Moda have a pipeline of 6,500 apartments across nine cities in England and Scotland. Apache Capital brought in LaSalle Investment Management to fund a Moda Living project in Liverpool, The Lexington, through a four-year £58.5m senior debt facility, and a £85m loan from pbb Deutsche Pfandbriefbank for Angel Gardens, Manchester.

Richard Jackson, managing director and co-founder at Apache Capital said: “We’re delighted to partner with Goldman Sachs for their first UK multifamily deal. Our platform with Harrison Street and NFU Mutual has shown that there is significant institutional interest in residential property and in spite of Brexit, demand for defensive, long-term income streams continues to thrive.”

Chris Semones of the merchant banking division of Goldman Sachs said: “This transaction continues our originate-to-hold strategy for large loans against high quality projects with excellent sponsorship, strong market fundamentals and resilient cash flows.

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