Gatehouse IM completes refinancing deal with LGIM

Gatehouse IM completes a £78m refinancing deal with Legal & General IM for its single-family Build to Rent portfolio.

Highfield Green single-family Build to Rent homes in Kirkby, operated under the DifRent brand. The scheme is part of a joint venture with Gatehouse IM and the Kuwait Investment Authority who have completed a refinancing deal with LGIM | BTR News
Highfield Green single-family Build to Rent homes in Kirkby, operated under the DifRent brand. The scheme is part of a joint venture with Gatehouse IM and the Kuwait Investment Authority who have completed a refinancing deal with LGIM.

Gatehouse IM (Gatehouse Investment Management) completes a £78m 55% LTV senior secured bullet refinancing of its UK single-family Build to Rent portfolio with Legal & General Investment Management’s (LGIM’s) dedicated UK and European real estate finance division. CBRE advised Gatehouse IM on the refinancing.

Alongside refinancing a previous loan, the facility enables Gatehouse IM to implement environmental performance improvements across the portfolio. The refinance also provides additional headroom to expand the portfolio if a suitable opportunity presents itself.

“We are hugely pleased to have secured this refinancing facility from LGIM, which will not only underpin the targeted expansion of the platform but also enable our ongoing work to improve the sustainability of the properties. The success of UK PRS since its launch has demonstrated the opportunities presented by single-family Build to Rent, and we’re excited to be moving into a new, acquisitive phase for the platform.”

Florian Graham-Watson, Head of Structuring, Gatehouse IM

Launched in 2015, Gatehouse IM’s UK single-family Build to Rent portfolio is a joint venture with the Kuwait Investment Authority. To date, the platform comprises 750 homes which are operated under the DifRent brand. Homes are located across nine sites in Greater Manchester, Merseyside and the West Midlands.

This facility underlines the joint venture’s commitment to the single-family Build to Rent sector – as well as the successful performance of the portfolio. It also allows the platform to continue focusing on its sustainability features, which includes a commitment that all homes will have an EPC rating of ‘B’ or higher by the end of 2023.

“This transaction marks the beginning of a relationship-led journey with an experienced management team. We look forward to exploring further deployment opportunities with Gatehouse IM and the Kuwait Investment Authority in the single-family rental sector.

“Despite the wider macroeconomic backdrop and volatility in financial markets our property expertise, experience in the real estate financing market, and flexible debt structuring capability allows us to be active and competitive. We take a longer-term sustainable view on property and loan performance with an appropriate risk-based approach.”

Patrick Sweeney, Investment Manager, LGIM Real Assets