UK real estate investment manager Apache Capital together with Harrison Street and insurer NFU Mutual have secured a refinancing facility for The Lexington, a Liverpool asset operated by Moda Living.
The £70 mln (€80 mln) facility from Deutsche Bank refinanced the legacy development loan with a new investment loan.
The £115 mln GDV scheme was the first operational development in Apache Capital, Harrison Street and NFU Mutual's joint venture, which launched in 2018 to fund delivery of Moda’s high quality, amenity-rich BTR portfolio in core cities across the UK. The portfolio is being developed and operated by Moda.
The 325-home BTR asset, which has reached stabilisation on a let and reserved basis, having pre-let 40% of the apartments at the time of opening in September 2021, is located on the Liverpool waterfront within a wider regeneration project. Initial construction started in September 2018 and was completed on time and budget in August 2021.
Other schemes within Apache Capital, Harrison Street and NFU Mutual's prime multifamily portfolio with Moda include The Mercian in Birmingham - the city's tallest completed residential tower and subject of Goldman Sachs’ first ever UK BTR development loan - as well as New York Square in Leeds, The McEwan in Edinburgh, and Holland Park in Glasgow, where construction has commenced..
In addition to the prime multifamily pipeline with Moda, Apache Capital has a separate single-family BTR platform (Present Made) and had previously invested in purpose-built student accommodation and senior living.
John Dunkerley, co-founder and CEO at Apache Capital, said: ‘The fact we were able to complete this transaction despite the challenging market conditions reflects both the quality of the product delivered by Moda and the enduring appeal of residential for rent as an asset class.’