Apache Capital Partners and Moda Living announce that, through their Build to Rent (“BTR”) Joint Venture, they have secured planning consent for their £82 million premium purpose-built rental development, ‘The Lexington, Liverpool’, the JV’s first major project in the city. Named after the building’s New York-inspired design, The Lexington forms part of the Peel Group’s £5.5 billion Liverpool Waters regeneration masterplan and overlooks the docks that first kick-started Liverpool’s growth. The scheme will be delivered by Moda Living, a developer and operator of private rented housing, and will be fully funded by Apache Capital, the London and Gulf based private real estate investment management firm.
The 34-storey tower, designed by Falconer Chester Hall architects, will be the tallest residential landmark in the city’s Liverpool Waters area. Alongside 304 high-specification apartments (ranging from studios to one, two and three-beds), there will be 15,000 sq. ft. of dedicated amenity space. With a 17th floor residents’ lounge, gym, roof terrace, garden, fitness studio, an indoor/outdoor cinema and 24-hour managed concierge, The Lexington will raise the bar in Liverpool’s rental market. Unlike other developers, Moda Living and its funding partner Apache Capital will retain ownership of the property and operate it through their JV to ensure the creation of a genuine long-term community and investment platform. The building is the biggest single investment into Liverpool’s property market this year, underlining Mayor Joe Anderson’s commitment to supporting investment and housing.
Apache Capital Partners is pleased to announce today that it is forming a strategic Joint Venture with Moda Living Ltd, itself formed by Caddick Group Plc and Generate Land Ltd. The Joint Venture will plan, develop, deliver and operate a leading premium BTR portfolio, located in prime sites across UK regional cities, with a pipeline of approximately 5,000 units and a gross development value of £1 billion.
Following more than two years of due diligence, this strategic Joint Venture makes Apache Capital the long term funding partner of Moda Living. The partnership is expected to create the largest owner of regional purpose-built BTR and one of the largest owners of BTR overall in the UK. Apache Capital will be the majority partner of the Joint Venture.
The portfolio concentrates on regional centres where population growth and an undersupply of residential accommodation looks set to trigger rental and capital growth over the next few years. A focus on prime locations attracting the ideal tenant profile for BTR developments; 20-44 year olds with disposable income who demand locations and buildings that come with high quality services and amenities.
The seed asset is Angel Gardens, Manchester, located in the centre of the Co-op and Hermes 20 acre Noma masterplan and bordering the vibrant and attractive Northern Quarter. This landmark development includes an iconic Mies Van Der Rohe-inspired 36 storey tower, comprising 458 stylish units, high quality gardens and resident amenities tailored for the Build to Rent sector. In a complex with unparalleled public realm, co-locating retail and high quality bar and restaurant space, Angel Gardens is expected to set the new standard for luxury, contemporary living in Manchester.
Angel Gardens will offer its customers a lifestyle choice not currently available in the city. All Moda Living customers will have exclusive use of all amenities within the building, including resident lounges, a state of the art cinema room and business meeting space. Plus there is a rooftop garden complete with BBQ zones, gym and fitness classes, Yoga and the ‘Multi-Moda’ sport court complete with netball, tennis, basketball and football facilities and a comprehensive range of concierge services.
Richard Jackson, Co-Founder and Managing Director of Apache Capital Partners, said: “We at Apache Capital have seen a strong demand from our Middle Eastern investors in the UK’s Private Rented Sector. This is partly because BTR is already an established sector in the region, the sector’s continuing supply/demand imbalance in the UK, but also coupled with the prevailing lifestyle shift toward flexible living that delivers high quality amenities and services. Following two years of intensive due diligence, we at Apache Capital are very pleased to be forming this strategic Joint Venture with Moda Living,our development and operating partner.
“The 5,000 unit secured portfolio provides us immediate scale and Apache Capital and Moda Living will currently be the largest owner of regional purpose-built BTR and the second largest owner overall in the UK.
“This strategy builds on the success of Apache Capital’s Social Infrastructure investment platform, where we have aggregated an institutional grade portfolio of assets in the student accommodation and healthcare sectors.”
Johnny Caddick, Director of Moda Living, adds: “We’re really pleased Apache Capital acknowledge and understand the vision Moda Living has to deliver a best-in-class BTR product and we are looking forward to delivering our portfolio with them as our strategic partners.
“Traditional views on renting are changing and more people are looking towards BTR for long-term tenure. With this in mind Moda Living’s aspirations are to create lifestyle developments that focus on putting the tenants – our customers – at the heart of the concept. This will ensure we constantly evolve to stay ahead of the market and the changing face of renting as we know it, which enables us to create living spaces that are tailored specifically for city-centric lifestyles.”
Apache Capital Partners is pleased to announce today that they have completed, on behalf of their Social Infrastructure business, the acquisition of a 210 bed premium student accommodation development in Kingston Upon Thames, London. The total development value is expected to be approximately £49 million. The acquisition was completed through a Joint Venture with Investra Development, a private development and investment firm, and this was an off market transaction.
The property, known as Kingsgate House, is currently being developed into a prime, purpose-built student accommodation asset and will comprise 210 high quality studio rooms of various sizes. The property will be finished to a very high specification and includes 4,835 sq ft of retail accommodation.
The site is situated on Kingsgate Road and is well located within 10 minutes walk of the main Kingston University campus and close to the city centre. The property has access to excellent transport links into Central and West London.
Outline planning has been obtained and Apache Capital intends to secure detailed planning consent during 2015, with practical completion expected in time for the 2017/18 academic year.
Following this transaction, Apache Capital currently has a portfolio of premium student accommodation schemes valued at approximately £203 million over three assets comprising 1,509 units. Apache Capital has a total portfolio of assets under management valued at approximately £335 million.
Richard Jackson, Co-Founder and Managing Director of Apache Capital Partners, said: “This acquisition is in line with Apache Capital’s Social Infrastructure strategy to invest in a diversified portfolio of modern, premium student accommodation properties. London continues to be one of the most popular student destinations in the world and demand for UK higher education continues to rise. This demand coupled with continuing supply constraints, leads us to view the market as a compelling investment opportunity.”
“We are delighted with this transaction with Investra Development, our Joint Venture partner, which took three weeks to complete from agreement of terms, including debt finance from Greenoak. We look forward to working with Investra Capital on securing detailed planning and developing and operating this asset.”
Nick Hornby, Development Director of Investra Development, commented: “This site not only provides an excellent student opportunity but it is also a key development site in the regeneration of the Kingston town centre. Investra Development is looking forward to working with Apache Capital Partners in delivering up a high quality student scheme. This is now our third scheme since inception of the company in May 2014 and fits perfectly with our strategy of buying prime sites in under supplied centres.”
Apache Capital Partners, the London and Gulf-based private real estate investment management firm, announces today that they have successfully disposed of Paris Gardens, London SW1, a premium student accommodation operational asset, to LetterOne, an investment vehicle, for £61 million and also acquired the existing share from their joint venture equity partner, McLaren, of their Central London premium student accommodation and office Joint Venture scheme on Paul Street, Shoreditch, London EC2. LetterOne was co-founded by Mikhail Fridman, German Khan and Alexei Kuzmichev.
Paris Gardens was originally acquired jointly by Apache Capital Partners and McLaren from Ireland’s National Asset Management Agency (“NAMA”) in 2011. This purpose built, direct-let, high specification student accommodation asset comprises 253 units and is strategically located in Southwark, Central London. It is 100% let for the current academic year and has achieved 100% occupancy since its first academic year.
The Paul Street acquisition values the total development at £108.6 million. The development was acquired in 2013 and will comprise 456 high quality units and 43,000 sq ft of office space, with completion by August 2015.
Following these transactions, Apache Capital currently have a portfolio of premium student accommodation schemes valued at £162.5 million over three assets comprising 1,299 units. Apache Capital have a total portfolio of assets under management valued at approximately £334.45 million.
Richard Jackson, Co-Founder and Managing Director, Apache Capital Partners, said: “We are delighted to have completed these two student accommodation transactions, which are in line with Apache Capital’s Social Infrastructure strategy to build high quality and scalable portfolios on a bespoke basis, before exiting to institutional investors. This has successfully generated attractive returns to our investors through our development and operational experience.
With substantial funds currently available, Apache Capital are set to double our assets under management throughout 2015 by continuing to build a portfolio of institutional grade assets across student accommodation, healthcare and dementia care, where we see value underpinned by macro-led fundamentals that are not just economic but also demographic, social and/or political that support longer term occupational and thus investment demand.”
McLaren Property (MPL), the investment and development arm of the McLaren Construction Group, announced today the sale of its Brunswick House student accommodation development to Apache Capital Partners, the London and Bahraini based real estate investment management firm, on behalf of Apache and Tadhamon Capital’s managed Social Infrastructure investment platform.
The £25.4m scheme in Cambridge, was MPL’s group’s first student accommodation development and opened in September 2012 with 100% occupancy. Brunswick House comprises 251 direct-let student beds, including a mix of studio flats and cluster accommodation and is presently over 70% let for the 2013 academic year.
John Gatley, Managing Director commented: “This further strengthens our relationship with Apache as an equity partner. We look forward to building our relationship in the future , and are currently in discussion with Apache on a number of pipeline developments”.
Richard Jackson, Partner, Apache Capital Partners LLP commented: “McLaren Property’s expertise in the student accommodation market has established MPL as our trusted partner on behalf of our Middle Eastern investors. Our shared entrepreneurial approach has enabled us to develop in conjunction with McLaren, our social infrastructure investment platform and we look forward to continuing this partnership further in 2013.
Gatehouse Bank plc, the London-based investment bank specialising in Shariah-compliant products and services, provided £10m of senior financing to Apache Capital Partners, for the acquisition of Mourant Ozannes’ HQ offices, a leading offshore law firm based in Jersey.
Nick Westoby, Vice President of the Bank’s Real Estate Finance Team, commented: “Given the sound property fundamentals and experience of the team at Apache Capital Partners, we are pleased to have put in place the funding for its acquisition. We hope to further develop this relationship and explore future possibilities with Apache which could add to the healthy pipeline of opportunities currently growing the financing book of Gatehouse Bank.”
Natale Giostra, Head of Real Estate Finance at Gatehouse Bank commented: “We’re delighted to announce the closure of our third real estate financing deal, particularly with it being our first sponsor to specifically require Shariah-compliant finance. This deal highlights the success and competitiveness of the recently formed team and puts us in a strong position for the year ahead.”
John Dunkerley, CEO of Apache Capital Partners, said: “Gatehouse have demonstrated their understanding of Shariah compliant finance, structures and the nature of our Middle Eastern investors. Apache Capital has a substantial investor base and we are actively building our shariah complaint high income strategy. We look forward to building our relationship with Gatehouse Bank in the future.”
McLaren Property, the real estate development and investment division for McLaren, and Apache Capital Partners announce today that they have entered in to a £100m joint venture for the development of a student and office scheme in Shoreditch. The development will comprise 419 high quality units and 43,000 sq ft of office space, with completion for the 2015 academic year.
Debt financing for the development is being provided by RBS and the office building has been forward sold to Helical Bar Plc for £21m.
The development is well-located to benefit from the increasing demand from over 50,000 students studying within 20 minutes’ walk of the development.
This transaction represents the second successful acquisition by McLaren Property and Apache Capital Partners from Ireland’s National Asset Management Agency (“NAMA”). The first was the 253 bedroom student accommodation development at Paris Gardens, in Southwark, which completed this summer and achieved 100% occupancy during its first academic year.
McLaren currently has a growing portfolio of student accommodation schemes in addition to its other development activities, focused on London, Cambridge, Oxford and strong university locations throughout the UK with a total of over 3,000 beds and a gross development value in excess of £500m. The student accommodation portfolio forms part of McLaren’s total development pipeline across all sectors of over £1bn.
Apache Capital Partners’ Social Infrastructure Investment Platform, managed jointly with Tadhamon Capital, now comprises £225m of assets under management across a portfolio comprising over 1,500 student accommodation bedrooms in addition to healthcare and affordable housing sectors.
John Gatley, Managing Director, McLaren Property, said: “We are very pleased to have concluded another significant deal in our joint venture equity relationship with Apache Capital Partners. The prime student accommodation and high-end residential sectors remain the focus for McLaren Property’s investment and development pipeline.”
Richard Jackson, Founding Partner, Apache Capital Partners, said:“We are delighted to have completed the Paul Street, London transaction, which takes Apache Capital’s assets under management to £225m. Apache Capital has again proven that through our experience and established contacts we can capitalise on the opportunities and act quickly given the strength of our Middle Eastern backing, to fund high quality institutional grade investment opportunities with attractive terms. This transaction is our third with McLaren Property and further demonstrates our track record in the student accommodation sector. Over the past two years Apache has developed an institutional grade portfolio and we look forward to investing further with McLaren Property. With substantial funds currently available, Apache intends to double its assets under management over the next 12 months, continuing to specialise in the development funding of institutional grade assets in the alternative sectors.”
McLaren Property has announced a £45m joint venture funding agreement with Apache Capital Partners on behalf of Apache and Tadhamon Capital’s managed Social Infrastructure investment platform. The prime Central London development, known as Paris Gardens, Southwark, SE1, comprises 253 direct let beds and is due for completion in September 2013.
McLaren currently have a growing portfolio of student accommodation schemes in London, Cambridge, Oxford and Bath with a total of over 2000 beds, and this latest agreement will allow McLaren to accelerate further development in the sector.
John Gatley, Managing Director said: “We look forward to developing a long-term relationship with Apache to inject capital alongside McLaren equity, and are already in discussion on pipeline deals.”
John Dunkerley, Managing Partner, Apache Capital Partners said: “The funding of Paris Gardens, takes Apache Capital Partners gross assets under management to approximately $140m (£90m) and we also look forward to investing further committed capital with McLaren.”