Yorkshire-based Moda Living has agreed one the UK’s biggest residential finance deals for its project in Manchester with JV partner Apache Capital.
The £85million senior debt facility with pbb Deutsche Pfandbriefbank, a leading European specialist bank, will fund the delivery of Angel Gardens. It has a four-year term to facilitate the construction period and will automatically convert into an investment loan for the remainder of the term.
It’s the first residential skyscraper to be delivered outside of London since the financial crisis.
As a central part of the NOMA neighbourhood in Manchester city centre, the £153 million development covers 520,000 sq ft. and comprises 466 rental apartments opposite Manchester Victoria.
Moda Living, headquartered in Harrogate, is one of the first build to rent companies developing and operating schemes right across the UK.
Each Moda building will feature an array of social spaces, communal facilities and work areas, together with substantial commercial space. Financed by Middle Eastern institutional capital, the properties will be developed and operated solely for rent, raising the bar for service and quality in the private rented sector.
The Angel Gardens scheme will be one of the biggest and highest specification rental developments delivered anywhere in Britain. It comes ahead of similarly ambitious projects in Liverpool, Leeds, Birmingham and Glasgow.
The company recently announced a £105m redevelopment of the former Strathclyde Police headquarters, having secured planning consent for a The Lexington, its 304-apartment scheme in Princes Dock, Liverpool.
Practical completion of Angel Gardens will be in two phases between 2019 and 2020.
Tony Brooks, co-managing director at Moda Living, said:
“The potential for institutional investment to help regenerate cities across the North is clear. Taking a long-term approach to housing, where we not just deliver it but operate the buildings, means that renters and local authorities can have the confidence in create genuinely cohesive communities. Build to rent will become a vital part of attracting talented workers to our cities and of capturing some of the £50bn of global investment chasing this emerging sector.”
Johnny Caddick, co-managing director at Moda Living, said:
“Having secured a significant pipeline across major UK cities, we are now focusing on delivering a project that we believe will set new expectations for rental housing in Manchester. Renewed support for build to rent from Gavin Barwell, the housing minister, is hugely welcome and we are delighted to have agreed competitive terms with Deutsche Pfandbriefbank.”
Charles Balch, Head of Real Estate Finance International Clients, UK & CEE at pbb Deutsche Pfandbriefbank, said:
“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.”
Richard Jackson, Co-Founder and Managing Director of Apache Capital Partners, said:
“We are now delivering the first substantial PRS tower development this side of the recession in the UK regions and this financing is the culmination of many years of work in the PRS sector and on Angel Gardens. Technically delivering and financing a building of this scale early in the UK PRS cycle has had many challenges and overcoming these underlines our JV team’s in-house expertise, the superior design and specification of our landmark scheme and the quality of amenities and services we are delivering.”