Investec provides loan for Charolais Gardens BTR

Investec closes £19.3m loan to Edmond de Rothschild for Charolais Gardens, a Build to Rent development in Rugby, Warwickshire.

Rugby Town Centre. Investec has provided a loan to Edmond de Rothschild for Charolais Gardens BTR in Rugby | BTR News
Rugby Town Centre.

Investec Real Estate provides Edmond de Rothschild Real Estate Investment Management (Edmond de Rothschild), the real estate investment management business within the Edmond de Rothschild Group, with a 39-month, £19.3m development loan. The loan will support the construction of Charolais Gardens, a 357-unit Build to Rent scheme in Rugby, Warwickshire.

The loan is Investec’s first with Edmond de Rothschild, which has made the investment through its Residential Investment Fund UK. Created in 2008, the strategy focuses on the development of affordable Build to Rent assets in UK regional cities. The Fund currently holds 11 assets, with three already stabilised and income producing.

“This transaction demonstrates our conviction in high quality, affordably priced Build to Rent schemes that benefit from excellent transport connectivity. The government’s Levelling Up agenda, the impact of the Covid-19 pandemic, and the sector’s defensive characteristics have seen accelerated investment in and demand for rental homes outside of London. Establishing new relationships with high-quality counterparties such as Edmond de Rothschild is a key part of our growth strategy, and we look forward to building a long-term partnership.”

Jonathan Long, Head of Corporate Real Estate, Investec

Charolais Gardens will deliver 357 Build to Rent homes – a mix of one- and two-bedroom apartments. Amenities include a concierge, gym, resident’s lounge and wellness garden. The development is due to complete in January 2023, with a first phase handed over for occupation in October 2022. Occupying a town centre location, residents will have access to train links, with London Euston and Birmingham New Street stations under 45 minutes journey time via Rugby station.

“This transaction is further evidence of the appetite for regional Build to Rent from a variety of both equity and debt providers. As a house, affordable UK residential is one of our strongest convictions. We hope this is the start of a strong relationship with Investec as we continue to grow our platform and create and launch a series of products investing in this space.”

James Whidborne, Head of Fund Management Residential UK, Edmond de Rothschild

2021 saw £3.1bn invested in regional Build to Rent, with 20,000 homes under construction and a further 30,000 with planning approval. Operators have reported strong lettings activity, and challenges around affordability in the housing market and changes in the way people are choosing to live underpinning ongoing demand.