Gresham House has extended a long-term debt facility worth up to €35.4m (£30m) to support further investment in affordable mid-market build-to-rent housing through its British Strategic Investment Fund strategy (BSIF). The company worked with life insurer Scottish Widows to agree the refinancing of five build-to-rent properties in the BSIF portfolio, at various stages of completion – with two currently fully operational. Built to a high standard, the apartments offer residents good ‘value-for-money and are let out at competitively priced rents versus comparable purpose-built private rental offerings.
In line with Gresham House’s integrated approach to ESG, the buildings have been developed with sustainability in mind – making use of extensively refurbished formerly vacant properties and integrating renewable energy solutions and sustainable materials in their construction, as well as including charging points for electric vehicle use. The financing arrangement comes as Gresham House continues to develop its offering across the housing space, with a particular focus on the build-to-rent market.
Joe Thomas, Investment Director at Gresham House, said: “Securing a long-term agreement with such a reputable lender is a testament to TradeRisks’ outstanding track record of arranging long-dated finance for housing-based investments. Our ability to arrange deals of this type in-house will allow us to quickly bring to market more affordable high-quality homes. Working alongside our development partners, we have been focused on the mid-market build-to-rent space for a number of years and will continue to deliver on our pipeline in this strategically important space – where there is also a sizeable opportunity for steady returns.”
Andy Langstaff, Associate Director of Loan Investments at Scottish Widows, said: “We are pleased to have worked with the Gresham House and Rise Homes team in structuring this long-term funding solution to support BSIF’s strategic objectives and the provision of high-quality yet affordable homes. This represents another positive social impact investment for Scottish Widows and further highlights our commitment to the UK housing sector.”
Antoine Pesenti, Head of Capital Markets, TradeRisks commented: “With this transaction, we have been able to secure funding at an attractive rate and tailored to meet the needs of the fund and the assets. Gresham House’s UK housing portfolio represents a highly attractive low-risk proposition for lenders.”