Real estate development lending platform – Precede Capital Partners – provides a £188m five-year whole-loan facility to a joint venture between Apache Capital, Harrison Street and NFU Mutual. The loan represents Precede Capital’s second since announcing its partnership with QuadReal Property.
Precede Capital was advised by Evershed Sutherland. Dalbergia provided construction due diligence for the lenders, BNP Paribas acted on the Valuation and Longevity Partners on ESG due diligence. Apache Capital was advised by Trowers & Hamlins and Pinsent Masons.
The loan facility will be used to finance the development of Moda Living’s Great Charles Street Build to Rent development in Birmingham city centre. The debt funding forms part of the overall funding package for the Build to Rent development, with equity being provided by Harrison Street, Apache Capital and NFU Mutual joint venture in the largest regional Build to Rent funding deal completed in the UK.
“We are pleased to have secured a development facility of this size – our largest to date – from Precede Capital in what are undoubtedly challenging market conditions. This reflects the quality of development we are delivering with Moda and the strength of our partners in Harrison Street and NFU Mutual. We have no doubt Great Charles Street will replicate the success of our first Birmingham Build to Rent development in Birmingham, The Mercian.”John Dunkerley, Chief Executive Officer, Apache Capital
The £302m (GDV) Build to Rent scheme will deliver 722 apartments – a mix of spacious one to three bedroom apartments across three blocks. Apartments will offer residents views over one of Birmingham’s oldest districts, The Jewellery Quarter. The first block is scheduled to complete in late 2025, with the final block scheduled for delivery in early 2026.
Great Charles Street amenities include a 24-hour concierge, cinema, residents’ lounges, co-working spaces and a gym. Great Charles Street will also include 20,000 sq ft of commercial space targeted at local and independent businesses.
“We look forward to bringing Great Charles Street to the Birmingham market, which is in critical need of high-quality Build to Rent assets. We are confident the strong demographics in Birmingham and high-quality finishes and amenities of the asset will support its long-term success.”Paul Bashir, Chief Executive Officer of Harrison Street’s European business
The project will target BREEAM ‘Excellent’ for its commercial areas and a HQM four-star rating for the residential. The electric heating system via air source heat pumps, on-site renewables via solar PV, and the sourcing of renewable energy for the site through the Renewable Energy Guarantees of Origin (REGO) scheme, will contribute to the project’s strong energy performance and low Scope 1 and 2 emissions profile.
“Great Charles Street is going to raise the bar for rental living in Birmingham’s historic Jewellery Quarter. This debt funding from Precede is a vote of confidence in the Moda Living product and in the resilient Build to Rent sector, and an integral piece of the puzzle in what is one of the largest regional funding deals in the UK Build to Rent market. We look forward to working with our investors and funders on Great Charles Street as we transform this long undeveloped site into a new jewel for the city.”Johnny Caddick, Chief Executive, Moda Living
This facility is Precede Capital’s inaugural transaction in the Midlands and second loan where Moda Living is delivering the project – the first, a £251m facility for Moda’s flagship London neighbourhood in Nine Elms. The total value of development loans completed by the firm is now almost £1.7bn.
“We are pleased to be partnering with Apache Capital, Harrison Street, NFU Mutual and Moda on the Great Charles Street scheme, which will directly address rising demand for Build to Rent options in Birmingham, a market characterised by structural under-supply. This latest loan, which is our inaugural deal in the Midlands, is testament to our ability to deliver sophisticated financial solutions for experienced sponsors and developers across the UK.”David Jerrard, Chief Credit Officer, Precede Capital