Apache Capital Partners and LaSalle Investment Management have agreed a new four-year €66.5m (£58.5m) senior debt facility for The Lexington development scheme in Liverpool. Apache Capital and its development partner Moda’s €102.3m (£90m) premium build-to-rent development scheme, The Lexington, will reach practical completion in H2 2021 and represents one of the biggest single investments into Liverpool’s property market over the past few years. This debt for The Lexington builds on Apache Capital’s existing relationship with LaSalle, representing the third debt financing deal between the parties.
The Lexington, the tallest residential landmark in the city’s Liverpool Waters area and one of the city’s largest residential schemes, is a landmark 34-storey, 325 apartment high specification development scheme that forms part of Peel Group’s €6.25bn (£5.5bn) Liverpool Waters regeneration masterplan. Designed by Falconer Chester Hall architects, it will have 15,000ft² of dedicated amenity space alongside the apartments, which range from studios to one, two and three-beds. With a gym, roof terrace, garden, fitness studio, an indoor/outdoor cinema, 24-hour concierge and 17th-floor residents’ lounge, The Lexington will raise the bar in Liverpool’s rental market.
Richard Jackson, Co-Founder and Managing Director of Apache Capital Partners, said: “We secured this new €66.5m (£58.5m) debt with LaSalle, following strong and growing appetite that we continue to see from international and domestic banks, institutions and funds for our growing build-to-rent portfolio, which is already one of the UK’s largest, worth €2.3bn (£2bn) with 6,000 apartments. Through our Social Infrastructure and Build-To-Rent platforms, Apache is one of the first private investment managers actively owning, developing and operating assets within the alternative sectors. This is our third loan with LaSalle and we now have debt facilities across our BTR, Student and Senior Living sectors, with appetite continuing to grow for our strategy of investing into long-term demographic trends. This financing, our second build-to-rent asset on which we have secured debt, provides funding diversification and underlines our JV team’s in-house expertise and the superior specification and amenities and services of this landmark scheme.”
Dan Pottorff, Managing Director, Debt and Special Situations at LaSalle Investment Management, commented: “We are pleased to support Apache Capital and the joint venture on the development of The Lexington, a landmark scheme for the Liverpool market. LaSalle has an established track record of lending against a diverse range of residential, student housing, hotel and healthcare properties through the LRF programme. This is the 11th debt investment on behalf of the programme and the 17th development facility arranged by LaSalle since 2013, underscoring our breadth of experience in the development funding market.”
