Deutsche Bank provides £70m loan for Moda, The Lexington BTR

Apache Capital, Harrison Street and NFU Mutual refinance The Lexington Build to Rent development with a £70m investment loan from Deutsche Bank.

Moda Living's The Lexington Build to Rent development in Liverpool. Apache Capital, Harrison Street and NFU Mutual have refinanced the scheme with a £70m investment loan from Deutsche Bank | BTR News
Moda Living's The Lexington Build to Rent development in Liverpool. Apache Capital, Harrison Street and NFU Mutual have refinanced the scheme with a £70m investment loan from Deutsche Bank.

Real estate investment manager Apache Capital, which specialises in the living sectors, Harrison Street, an investment management firm exclusively focused on alternative real assets, and insurer NFU Mutual, have successfully refinanced Moda, The Lexington – a flagship Liverpool asset in its UK wide Build to Rent platform with developer-operator Moda Living. A £70m facility from Deutsche Bank refinanced the legacy development loan with a new investment loan.

“The successful refinancing reflects Harrison Street’s commitment to identifying attractive, high-quality Build to Rent opportunities in markets backed by strong demographics. We look forward to continuing our partnership with Apache and working with market leading developer-operator brands such as Moda as we continue to execute on our strategy and generate value for our investors.”

Paul Bashir, Chief Executive Officer, Harrison Street’s European business

Moda, The Lexington sits on the Liverpool waterfront within a wider regeneration project. Construction began on the £115m GDV scheme in September 2018 and completed on time and budget in August 2021 – despite Covid-19 challenges. The development, which includes 325 Build to Rent homes, has reached stabilisation on a let and reserved basis. The scheme was 40% pre-let ahead of opening in September 2021.

“Moda develops and operates next generation rental homes across the UK, our focus is on providing high quality homes with exceptional customer service, market leading wellbeing and integrated tech. Moda, The Lexington has outperformed the Liverpool market and is now reaching stabilisation within just one year of opening. Its continued performance is testament to the brand, the support of our investment partners and the highly provisioned rental experience we deliver across our living sector platforms.”

Johnny Caddick, Chief Executive, Moda Living

Moda, The Lexington is the first operational development in Apache Capital, Harrison Street and NFU Mutual’s joint venture. The partnership launched in 2018 to fund the delivery of Moda Living’s high quality, amenity-rich Build to Rent portfolio in core cities across the UK. The portfolio is being developed and operated by Moda Living.

“The fact we were able to complete this transaction despite the challenging market conditions reflects both the quality of the product delivered by Moda and the enduring appeal of residential for rent as an asset class.

“We firmly believe our highly amenitised and serviced model with Moda will prove resilient, with both existing and prospective customers coming to appreciate the benefits of living in a professionally managed modern apartment building that is more energy efficient than a home in the traditional private rented sector, and comes with a host of onsite amenities, special resident services, as well as other benefits that are included within the monthly rental payment.”

John Dunkerley, Co-founder and CEO, Apache Capital

Other schemes within the joint ventures prime Build to Rent portfolio with Moda include The Mercian in Birmingham – the city’s tallest completed residential tower and subject of Goldman Sachs’ first ever UK Build to Rent development loan – as well as Moda, The McEwan in Edinburgh and Holland Park in Glasgow where construction has commenced, and Moda, New York Square in Leeds which officially launched this week.

Apache Capital also has a separate single-family Build to Rent platform – Present Made – launched in May 2021, and had previously invested in purpose-built student accommodation and senior living.