Apache Capital has formed a joint venture with Harrison Street Real Estate Capital that, with additional investment from National Farmers Union Mutual Insurance Society Limited, intends to fund the development of up to seven premium build-to-rent schemes across England and Scotland. The New Platform has successfully closed and recently began construction on its first build-to-rent scheme, The Lexington, which is located in Liverpool and intends to invest on an asset-by-asset basis as the construction of the other six Phase One schemes are brought forward over the next 20 months. The seven schemes in Phase One include properties in Birmingham, Edinburgh, Glasgow, Liverpool, Leeds and London (two assets).
John Dunkerley, Co-Founder and CEO of Apache Capital Partners, said: “These new equity commitments underscore that the UK’s build-to-rent sector is developing into an institutional asset class, attracting long-term global investors. Harrison Street has been investing in and developing student housing assets in the UK since 2015 and we look forward to partnering with them and NFU Mutual as we expand our portfolio, which we will fund and operate with long-term institutional build-to-core investors.”
Rob Mathias, Senior Managing Director at Harrison Street, commented: “We are excited to partner with Apache Capital, a world-class class investor and leader in the premium UK build-to-rent space. The Liverpool BTR market is backed by strong demographics, including a large and growing population of young professionals who are not yet ready to buy a home, and the property itself is situated in a prime location. We have been closely watching the UK residential market for some time, and are pleased to bring the experience we have acquired investing in and developing high-quality purpose-built student accommodations across the UK, to this venture. The JV’s pipeline is very strong and we look forward to evaluating these additional attractive properties as we seek to identify new investment avenues for our clients.”
Tom Bostock, Property Investment Manager at NFU Mutual, added: “We are pleased to make our first investment in build-to-rent, diversifying into a new and emerging sector in the UK. We identified Apache Capital as a long-term partner with a unique premium portfolio that’s been carefully secured and being developed by them in partnership with Moda. Its scale, quality, differentiated offering and services, makes it stand out in the UK market. We look forward to building on this relationship.”