Apache Capital Partners and Moda have announced a four-year £58.5 million senior debt facility for their forthcoming residential tower The Lexington.
LaSalle Investment Management has provided the senior debt financing, with an option to extend for two years, for the build-to-rent scheme within Liverpool Waters through its fund LaSalle Residential Finance (LRF) III.
A construction partner is also expected to be announced ‘shortly’ for the £90m development at Princes Dock, which is scheduled to reach practical completion in 2021.
The 34-storey building, designed by Falconer Chester Hall, will feature 325 apartments alongside a range of residents’ facilities.
The debt facility follows an announcement last week that Apache Capital has formed a new joint venture with Harrison Street Real Estate Capital that, with additional equity investment from National Farmers Union Mutual Insurance Society Limited, is expected to help fund the Liverpool project along with six others in England and Scotland.
Richard Jackson, co-founder and managing director of Apache Capital Partners, says: “We secured this new £58.5m debt with LaSalle, following strong and growing appetite that we continue to see from international and domestic banks, institutions and funds for our growing build-to-rent portfolio, which is already one of the UK’s largest, worth £2 billion with 6,000 apartments.
“This financing, our second build-to-rent asset on which we have secured debt, provides funding diversificiation and underlines our joint venture team’s in-house expertise and the superior specification and amenities and services of this landmark scheme.”
Dan Pottorff, managing director of debt and special situations at LaSalle Investment Management, adds: “We are pleased to support Apache Capital and the joint venture on the development of The Lexington, a landmark scheme for the Liverpool market. LaSalle has an established track record of lending against a diverse range of residential, student housing, hotel and healthcare properties through the LRF programme.