NatWest provides £21m funding package for residential development

The Oldham Road scheme

Banking group NatWest has provided a £21.3m development finance facility for Cheyne Impact Real Estate’s project in Oldham Road, Manchester.

The development, which is due to top out this month, will be mixed tenure with 35% of the 144 homes allocated to local key workers at a significant discount to market-rate rent.

In keeping with all of Cheyne Impact Real Estate’s projects, the accommodation will be ‘tenure blind’ with no difference in specification or service between the homes offered at discounted rent and those at full market rate.

Following acquisition, 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.

Laurus Property Partners advised Cheyne on the financing of the scheme.

Andrew Wheldon, managing director at Laurus Property Partners, said: “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 Sergeant, of Cheyne Impact Real Estate, said: “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.”

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