Investec Real Estate has provided a Greystar led joint venture with a €200.7m (£170m) loan in conjunction with its partner lender, a global institutional investor. The investment facility refinances an existing loan and is secured against Sailmakers, the JV’s flagship 327-unit Build-to-Rent (BTR) scheme in Canary Wharf. The transaction represents the second time that Investec has partnered with Greystar, the global leader in rental housing, and is the largest loan it has provided in the rental housing sector to date. Half of the finance package was arranged with a global institutional investor, with Investec providing €100.3m (£85m), demonstrating its ability to originate larger ticket loans and structure club deals for the benefit of its global client base.
Sailmakers comprise a mix of one, two and three-bedroom spacious and modern apartments. The highly amenitised scheme features a 24-hour concierge, sizeable co-working offering, state-of-the-art gym, private events area and roof terrace with enviable views over the City of London. A stone’s throw from Canary Wharf’s business district, as well as its plentiful shops, bars and restaurants, the pet-friendly scheme offers residents excellent connectivity to Waterloo (nine minutes), Bank (13 minutes) and Bond Street (25 minutes) via the London underground.
Ed Boughton, Investec Real Estate, commented: “The London Build-to-Rent sector is a key area of focus for Investec, providing an attractive investment proposition, with the current supply-demand imbalance of premium, professionalised rental product, along with the city’s sustained position as Europe’s pre-eminent financial and cultural centre, further increasing its appeal. Our significant residential and structuring expertise enabled us to see through the near-term pandemic induced headwinds affecting occupancy and sentiment around the location, with the recent strong performance at Sailmakers already part validating our investment. Furthermore, it demonstrates the value in partnering with global-leading operators such as Greystar, with who we seek to further grow the relationship as well as our exposure to this sector.”
Angus Gordon, Investec Real Estate, commented: “This transaction is an excellent example of our ability to match a first-rate client base with preeminent global investors. Our deep understanding of the UK ‘Living’ sector enabled us to structure a facility that met the needs of both sponsor and investors, mitigating the concerns over the impact of Covid at the time. Continuing to evolve and expand our client offering beyond the scope of our own balance sheet is a key focus for the Real Estate team as our loan book approaches circa €3bn (£2.5bn) and we strive to maintain our market-leading position.”
