Moda seals £85m loan to build Angel Gardens
MODA Living has agreed an £85m loan for a built-to-rent development in Angel Gardens, Manchester – its biggest development.
The Harrogate-based group, which has been pushing the regional PRS agenda, has signed the deal for its project in collaboration which Apache Capital.
The senior debt facility with specialist European bank pbb Deutsche Pfandbriefbank, will fund its Angel Gardens development, with a four-year construction period.
Angel Gardens is the first residential skyscraper delivered outside London since the financial crisis. When complete, the £153m Manchester city centre development will consist of 466 apartments, and a total of 520,000sq ft.
Practical completion of Angel Gardens will be in two phases between 2019 and 2020.
The company is also undertaking similar projects in Liverpool, Leeds, Birmingham and Glasgow.
Tony Brooks, co-managing director at Moda Living, said: “The potential for institutional investment to help regenerate cities across the North is clear.
“Taking a long-term approach to housing, where we not just deliver it but operate the buildings, means that renters and local authorities can have the confidence in create genuinely cohesive communities.
“Build to rent will become a vital part of attracting talented workers to our cities and of capturing some of the £50bn of global investment chasing this emerging sector.”
Johnny Caddick, co-managing director at Moda Living, said: “Having secured a significant pipeline across major UK cities, we are now focusing on delivering a project that we believe will set new expectations for rental housing in Manchester.
“Renewed support for build to rent from Gavin Barwell, the housing minister, is hugely welcome and we are delighted to have agreed competitive terms with Deutsche Pfandbriefbank.”
Charles Balch, head of real estate finance international clients, UK & CEE at pbb Deutsche Pfandbriefbank, said: “We are delighted to have closed this landmark transaction with the Apache and Moda teams.
“Well-located developments managed by experienced teams in main regional centres remain an appealing asset class and fit well within our prudent lending strategy.”
Richard Jackson, co-founder and managing director of Apache Capital Partners, said: “We are now delivering the first substantial PRS tower development this side of the recession in the UK regions and this financing is the culmination of many years of work in the PRS sector and on Angel Gardens.
“Technically delivering and financing a building of this scale early in the UK PRS cycle has had many challenges and overcoming these underlines our JV team’s in-house expertise, the superior design and specification of our landmark scheme and the quality of amenities and services we are delivering.”
