NatWest has provided a £21.3m development finance facility for socially responsible landlord Cheyne Impact Real Estate, for its Build to Rent project in Oldham Road, Manchester. Laurus Property Partners, a leading pan-European capital advisory business with offices in London and Munich advised Cheyne on the financing of the scheme.
“We are pleased to be partnering with NatWest on this exciting journey where we aim to demonstrate that high quality, aspirational homes can be provided by impact-led institutional investors at affordable rents.”Andrew Sergeant of Cheyne Impact Real Estate
The scheme will deliver 144 new Build to Rent homes with 35% of the homes allocated to local key workers at a significant discount to market-rate rent. The homes will be ‘tenure blind’ – offering the same specification and service between the discounted rent and those at full market rate. The development is also due to top out this month (June 2022).
“We are delighted to support Cheyne Impact Real Estate in the delivery of 144 new Build to Rent homes, which help to provide much needed UK housing and include homes solely designated for key workers at discounted rent.”Phil Hooper, Head of Real Estate, NatWest
Following the acquisition of the scheme, Cheyne substantially reconfigured the development, lifting the average EPC rating to B, upgrading the specification and converting space previously designated as commercial into communal work, entertainment and relaxation spaces for residents.
“The current inflationary pressures and rising interest rates mean that the Build to Rent sector is set to play an increasingly central role in the UK housing market. Given that it is key workers who often feel these pressures most acutely, it has been a pleasure to assist Cheyne in its delivery of high quality, affordable homes for key workers in Central Manchester.”Andrew Wheldon, managing director, Laurus Property Partners
Alternative investment manager Cheyne Capital launched its first Social Property Impact Fund in November 2014 and its second Impact Real Estate Trust in April 2020 in order to help tackle the chronic shortage of affordable housing solutions in the UK. Cheyne Impact Real Estate is a socially responsible landlord which delivers property for use as affordable and specialist housing. The strategy forms part of Cheyne Capital Real Estate, which has provided financing solutions since 2009. It now manages approximately half of the firm’s £8bn in assets across social impact equity, direct real estate lending, securitised European real estate debt and selective special situations.