Investec Bank has provided a £41.4m loan to refinance a build-to-rent scheme in West London, supporting a shift to a long-term rental strategy.
The facility backs North Kensington Gate, a completed residential asset in Old Oak Common, and has been agreed with City & Docklands and Housing Growth Partnership.
The deal will support the sponsors’ plans to hold the scheme as a long-term BTR investment in an area undergoing significant regeneration.
Old Oak Common is set to become a major transport hub, with the new station connecting HS2, the Elizabeth line, Great Western Railway and Heathrow Express services.
LONG-TERM VISION
Investec said the refinancing was structured to reflect the borrower’s evolving business plan and long-term vision for the asset.
Ian Burdett, Investec Real Estate, says: “City & Docklands and Housing Growth Partnership required a financing solution that reflected their strategy for the asset.
“Investec was able to provide a tailored refinance that supports the long-term hold of North Kensington Gate as a build-to-rent scheme, while also backing a client relationship that has been built over many years.
“This transaction demonstrates Investec’s ability to structure flexible capital around our client’s business plans and to support experienced sponsors as they position assets for long-term growth in locations with strong underlying fundamentals.”
REGENERATION AREA
Gary Sacks, Chief Executive Officer at City & Docklands, adds: “North Kensington Gate is an important scheme for City & Docklands and for the wider Old Oak Common area.
“As our strategy evolved around an area undergoing substantial regeneration, it was important to work with a funding partner that understood both the asset and our wider vision. Investec’s support and long-standing partnership gave us the confidence and flexibility to move forward with the right structure for the next phase of the scheme.”
Tasos Ikonomou, Investment Director of London & Southeast at Housing Growth Partnership, says: “HGP is pleased to continue supporting the next phase of North Kensington Gate, a scheme that plays a meaningful role in expanding the high-quality rental housing offering in West London.
“With major transport and regeneration investment underway at Old Oak Common, this project is well-placed to deliver lasting benefits for local residents and the wider community.”
The transaction adds to Investec’s recent activity in the living sector, including funding for a 414-home build-to-rent scheme in Luton.
