A joint venture between Gulf-backed investment manager Apache Capital and residential developer Moda Living has closed an £85 million financing agreement with pbb Deutsche Pfandbriefbank to fund its Angel Gardens private rented sector residential scheme in Manchester.
Last November, Real Estate Capital revealed that the German bank was close to agreeing a financing of the scheme, which is the UK’s first major residential tower outside of London to be built since the global financial crisis.
The senior loan will finance a £153 million scheme containing 34 storeys with 466 for-rent apartments in central Manchester.
The loan has a term of four years to cover the construction period, automatically converting to an investment loan for the remainder of the term. Practical completion of the building will be in two phases between 2019 and 2020.
Savills Corporate Finance and CBRE advised Apache in the deal.
Angel Gardens forms part of the NOMA redevelopment masterplan, a 20-acre mixed-use scheme opposite Manchester Victoria station. Angel Gardens covers 520,000 square feet and will be the first PRS scheme delivered by the Apache and Moda JV, which was created in May 2015.
The high-end Angel Gardens will include communal facilities and services, including a cinema room, restaurants, retail units, a gym and outdoor areas.
“We saw strong and growing appetite from international and domestic banks, institutions and insurers and are pleased to have secured this new £85 million debt financing from pbb Deutsche Pfandbriefbank,” said Richard Jackson, co-founder and managing director of Apache Capital Partners.
“This offers Apache Capital funding diversification as well as the potential for future financing with pbb as we deliver on our secured £1 billion GDV pipeline of 5,000 premium PRS homes,” Jackson added.
“Well located developments managed by experienced teams in main regional centres remain an appealing asset class and fit well within our prudent lending strategy,” said Charles Balch, head of real estate finance for international clients, UK and CEE at pbb Deutsche Pfandbriefbank.