Through the platform, Apache will deploy capital across the UK, with a special focus on the South East and London, where the firm finds itself more competitive after establishing a track record in the BTR segment, CEO and co-founder John Dunkerley told CoStar News.
In 2015, Apache created a joint venture with developer Moda Living to build BTR schemes across the UK. Since then, the investor has five BTR projects under construction in key regional cities. The first scheme to open to renters was the 466-unit Angel Gardens in Manchester, which is currently 75% let after opening in October last year
Apache Capital and joint venture partner Moda Living are to go live with its plans later this month to deliver a 720-home build-to-rent community in Birmingham.
Subject to planning, this will be the JV’s second site under development in the city after ‘The Mercian’, which at 42 storeys is Birmingham and the Midlands’ tallest residential tower under construction, with a further 13 stories recently being granted by Birmingham City Council. The construction of the Mercian has been financed by a £118m debt facility from Goldman Sachs, the US investment bank’s first ever UK BTR development loan.
Moda and Apache Capital will account for a total investment of £445m and 1,200 homes in Birmingham. This will support Birmingham’s ‘Big City Plan’ and account for massive 24% of the councils target of 5,000 new homes in the city.
Moda Living, a leading developer and operator of homes for rent, and joint venture partner Apache Capital have secured planning permission for the final phase of its £215m Springside development in Edinburgh. Block E, a six-storey building that will overlook Dundee Street and Drysdale Road, will include 139 high quality apartments designed exclusively for rent, ranging from studios to three-beds in size with ground floor amenity space including a lounge and co-working space. In total, Springside will provide 476 homes with 13,000 sq. ft. of internal amenities, including communal lounges, health and wellbeing facilities plus roof terraces and a private dining room with unique views of Edinburgh Castle, as well as fully managed communal gardens.
Moda and joint venture partner Apache Capital purchased the Springside site, which included 48 existing homes, in March 2017 from Grosvenor Great Britain and Ireland, one of the world’s most prestigious property companies. The deal marked one of the largest Scottish property transactions since the Brexit referendum, helping kickstart the local BTR sector. Grosvenor, one of the UK’s oldest property companies, had specifically chosen the JV for their build-to-rent expertise.
Apache Capital Partners has secured a £96m debt facility from LaSalle Investment Management to fund a £150m city centre build-to-rent development as part of their joint venture with Moda Living.
The four-year development loan from LaSalle will mature in mid-2023 and will fund the construction and stabilisation of New York Square. The deal marks LaSalle’s biggest UK BTR development loan to date and is the firm’s the fourth debt financing deal with Apache Capital, bringing the total sum lent across Apache Capital’s different investment platforms to over £250m.
The 515-home scheme, named New York Square, is one of seven that sits in the multifamily housing platform created by Apache Capital with Harrison Street Real Estate and NFU Mutual. Two of the other schemes in the platform, which is the UK’s largest privately funded, are already under construction. Apache Capital and Moda are looking to raise the bar for renting by providing tech-enabled, hotel-style service and a range of on-site amenities New York Square will include a 24-hour concierge, flexible working spaces, communal lounges and health and wellbeing facilities.
Managing director Richard Jackson is joined by Andrew Teacher of Blackstock Consulting, Graham Chilver from Barclays, and Alex Notay from Places for People to discuss the rise of the rise of build-to-rent developments across the UK. The group also discuss the new methods of financing that is powering the build to rent boom.
Mixed Use: the Changing Face of Britain’s Town Centres
Apache Capital Partners has secured a £118m debt facility from Goldman Sachs to construct Birmingham’s tallest residential building, as it accelerates delivery of its build-to-rent pipeline with Moda Living. The 4.5-year facility includes a 12-month extension option. Goldman Sachs is a significant global investor in the US and European rented residential markets and the transaction marks its’ first UK multifamily development loan.
Planning was granted for the 42-storey skyscraper at 212-223 Broad Street, Birmingham in December 2017. Future residents will be within walking distance of the city centre and new HS2 terminal, with Broad Street and the surrounding area also undergoing massive regeneration. A three-storey podium with a rooftop running track, the first in a UK residential development, will also house an additional 35,000 sq. ft. of retail and commercial space.
The £184m GDV scheme is being delivered by Apache Capital Partners and Moda Living, an owner, developer and operator of private rented housing.
Apache Capital Partners has exchanged contracts with a joint venture between Greystar Real Estate Partners LLC , a global leader in the investment, development and management of rental housing, a subsidiary of the Public Sector Pension Investment Board and Allianz Real Estate to dispose of a large purpose-built student accommodation (PBSA) asset in London’s Shoreditch.
Paul Street was developed by Apache with JV Partner McLaren Property with the building being completed in August 2015. It has been 100% let in every year of operation.
The sale of Paul St. East, in the heart of London’s tech quarter and close to Amazon’s east London office, for in excess of £160m is one of the biggest single-lot transactions in the history of UK’s PBSA and sets a new pricing benchmark for the sector.
Apache Capital plans to reinvest funds from the deal into its own build-to-rent pipeline with Moda Living, one of the UK’s largest national multifamily pipelines with 6,500 apartments across nine cities.
Apache Capital Partners disposed of its prime 251-bed purpose-built student accommodation property Brunswick House, in Cambridge to Cambridge County Council for £38m in August 2018.
Brunswick House, which was completed in July 2012 and comprised 231 en-suite cluster flats and 20 self-contained studio flats, is situated less than a 10 minute walk to the Anglia Ruskin University Cambridge Campus and opposite Compass House, part of Anglia Ruskin University (Computer Sciences) lecture facility. The city centre is within a short walking distance and the revitalised Grafton Shopping Centre is almost opposite Brunswick House.
The direct let property, which was is 100% let for the 2017/18 academic year, has a large common room and laundry facility at ground floor level, as well as comprehensive bicycle storage at basement level and within the enclosed, landscaped courtyard.
This is Apache Capital’s third student accommodation scheme disposal for its Social Infrastructure platform, its second to have set a new market yield level in its respective class following Paris Gardens, Southwark in February 2015.
Apache Capital has formed a joint venture with Harrison Street Real Estate Capital that, with additional investment from National Farmers Union Mutual Insurance Society Limited and Apache Capital, intends to fund the development of up to seven premium build-to-rent schemes across England and Scotland.
The New Platform has successfully closed and recently began construction on the first of these build-to-rent development schemes, The Lexington, which is located in Liverpool, The New Platform intends to invest on an asset-by-asset basis as construction of the other six Phase One schemes are brought forward over the next 20 months. The seven schemes in Phase One include properties in Birmingham, Edinburgh, Glasgow, Liverpool, Leeds and London (two assets).
The Lexington represents Harrison Street’s and NFU Mutual’s first BTR transaction in the UK, underscoring that build-to-rent is developing into an institutional asset class as investors are attracted to its defensive, counter-cyclical qualities.
Apache Capital and its development partner Moda have created within four years one of the largest UK premium build-to-rent portfolios worth £2 billion, today comprising over 6,000 homes across 10 schemes secured in prime city centre locations. Apache Capital and Moda’s £154 million flagship Angel Gardens scheme in Manchester’s NOMA district will open mid-next year and has been full funded by Apache and is not part of the Phase One portfolio. Apache Capital and its development partner Moda are continuing to identify and acquire development land to further expand its £2 billion build-to-rent portfolio.
Apache Capital Partners and Audley Group, the UK’s leading provider of luxury retirement villages, are pleased to announce that they have formed a new joint venture to deliver a 13,750 sqm luxury retirement village on Nightingale Lane, overlooking Clapham Common, London. The scheme has a gross development value of £125 million.
The scheme, situated on the site of a former police station and already with the benefit of a planning permission secured by Apache Capital, will deliver one of the first retirement village in central London, providing excellent transport links and with a wide variety of shops and amenities nearby.
Construction is anticipated to commence by mid 2018 with completion expected in 2020.