Debt package arranged by Natwest designed to fund build out of £1bn development programme
Bank Natwest has arranged a £285m debt package that will help build 3,000 homes in London and the South east with a value of £1bn.
The package will support the current schemes of a joint venture between global investment organisation EQT and Sigma Capital Group, which delivers and manages built-to-rent homes, as well as the JV’s acquisitions planned for next year.
The JV plans to build apartments and houses in more affordable parts of Greater London and its commuter towns.
Natwest agreed a £150m debt package with Leumi UK in February 2022 and sourced further liquidity from Allied Irish Bank and Dutch bank NIBC to bring up the total to £285m.
The JV initially plans to deliver the 3,000 homes that will be operated under Sigma Capital’s ‘Simple Life London’ brand and offered at an affordable rent dependent on each location’s household income. They are intended to be sustainable and, where possible, tap into local community heating networks and use photovoltaic panels.
Lee Franklin, director of structured real estate finance at NatWest Group, said: “We look forward to working with the teams at AIB and NIBC alongside our existing lending partner, Leumi UK.”
Peter Shacalis, managing director at EQT Exeter, the real estate arm of global investment organisation EQT that was formerly EQT Real Estate, said: “EQT Exeter is very pleased to have secured further funding which will help us to build affordable rental homes in London.”
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