NatWest and Leumi UK support EQT Exeter and Sigma’s Saturn JV

NatWest and Leumi UK support EQT Exeter and Sigma Capital’s residential JV to bring affordable new rental homes to Greater London.

Fresh Wharf Build to Rent scheme in Barking to be delivered by Saturn, EQT Exeter and Sigma Capital's JV - Natwest | Leumi UK | BTR News
Fresh Wharf Build to Rent scheme in Barking to be delivered by Saturn, EQT Exeter and Sigma Capital's JV.

In September 2020, EQT Exeter (formerly EQT Real Estate) the real estate arm of global investment organisation, EQT, and Sigma Capital Group, a residential development and urban regeneration specialist, launched a new joint venture – named Saturn – to build high-quality, well-located apartment blocks and houses in more affordable parts of Greater London and its commuter towns. EQT and Sigma Capital announce a debt financing package for Saturn.

“The team is delighted to support two NatWest customers with a debt financing package that will help deliver much-needed homes across Greater London. We are looking forward to continuing our relationship with EQT Exeter and Sigma Capital as they deliver positive change with a sustainable agenda.”

Lee Franklin, Structured Real Estate Finance Director, NatWest

Saturn has an initial capacity for an investment portfolio of approximately 3,000 Build to Rent homes, with a total value of over £1bn. NatWest and the UK-based subsidiary of Israel’s largest bank, Leumi UK, have agreed the first £150m of debt – consisting of a £120m revolving development facility and a £30m investment facility. The first four planned developments will be located in Barking, Walthamstow and Enfield.

Beam Park Build to Rent scheme in Havering - Natwest | Leumi UK | Sigma Capital | BTR News
Beam Park Build to Rent scheme in Havering.

“EQT Exeter is thrilled to be investing into the London residential market, one with a severe supply shortage of professionally managed, high-quality, good value homes to rent, with Sigma Capital. We are grateful for the continued support of NatWest and Leumi UK.”

Peter Shacalis, Managing Director, Investment and Asset Management, UK

NatWest’s Structured Real Estate Finance team arranged the £150m scalable debt package supporting the current Saturn portfolio and future development pipeline. The funding comprises an investment facility and a revolving development facility which is funded by NatWest and Leumi UK, the subsidiary of Israel’s leading international bank – Bank Leumi.

“The Leumi UK Property Finance book is growing, and we are thrilled to be able to facilitate this growth with high calibre, new-to-bank customers in the form of EQT Exeter and Sigma Capital. They both have a fantastic reputation and their JV strategy for providing sustainable and affordable homes aligns with our own ambitions in the market. What is more, we are very happy to be working with the team at NatWest again, to continue to deepen our already strong relationship as lenders.

Gez O’Sullivan, Property Finance Relationship Manager, Leumi UK
Evening view of Fresh Wharf BTR development in Barking - Natwest | Leumi UK | EQT Exeter | Sigma Capital | BTR News
Evening view of Fresh Wharf BTR development in Barking.

Saturn delivers buildings with strong sustainability credentials: where possible, the homes tap into local community heating networks and utilise photovoltaic panels. Saturn will also promote sustainable living practices – for example the developments will include ample cycle storage and will typically be located near green outdoor areas.

“We are delighted to be expanding our delivery of new rental homes in the UK with our London-focused joint venture with EQT Exeter, and we are very pleased about the flexible financing package that allows us to execute our business plan.”

Graham Barnet, CEO, Sigma Capital