Goldman Sachs enters UK BTR market with €136m Apache Capital loan

US investment bank Goldman Sachs has made its debut in the UK build-to-rent (BTR) space with a £118 mln (€136 mln) debt facility to fund a residential tower in Birmingham being developed by Apache Capital Partners and Moda Living.

The 4.5-year facility includes a 12-month extension option.

The 42-storey project at 212-223 Broad Street, which won planning permission in December 2017, represents an investment of £184 mln. London-based investment firm Apache Capital is backing the project, with Yorkshire's Moda Living, a BTR specialist, developing the scheme, as part of a joint venture launched in 2015.

'We’re delighted to partner with Goldman Sachs for their first UK multifamily deal. Birmingham has incredible long-term investment potential with considerable investment underpinning new infrastructure and employment,' said Richard Jackson, managing director and co-founder at Apache Capital.

The project includes 35,000 ft2 of retail and commercial space, as well as 31,000 ft2 of amenities including co-working areas, communal lounges and dining facilities.

A three-storey podium with a rooftop running track will also house an additional 35,000 sq ft of retail and commercial space.

Apache Capital and Moda have one of the largest BTR pipelines in the UK, with 6,500 apartments planned across nine cities as part of their ongoing joint venture.

The investment firm also launched a JV with Us-based Harrison Street Real Estate Capital last year to fund the development of up to seven premium BTR schemes across England and Scotland.


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