Apache Capital Partners agrees £58.5 million debt financing with LaSalle on the Lexington, Liverpool
LONDON (October 22, 2018) — Apache Capital Partners announces a new four year £58.5 million senior debt facility, with an option to extend for two years. LaSalle provided the senior debt financing, which is secured on The Lexington, Liverpool at Princes Dock, through its fund LaSalle Residential Finance III (“LRF III”).
Apache Capital and its development partner Moda’s £90 million 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 that Apache Capital has closed with them and the third sector, with Apache having loans already secured across student accommodation and senior living.
The debt facility was provided by LRF III, a real estate debt venture launched by LaSalle in 2017 that provides real estate debt facilities for the development of residential (for sale or for rental), student housing, hotels and healthcare property in the UK and Continental Europe on behalf of a pension fund client. The LRF programme was established in 2013 and has raised c.£850 million and closed 11 debt investments since then.
The LaSalle debt follows the announcement, on 11 October 2018, that Apache Capital has formed a new joint venture with Harrison Street Real Estate Capital that, with additional equity investment from National Farmers Union Mutual Insurance Society Limited and Apache Capital, expects to fund the development of up to seven premium build-to-rent schemes across England and Scotland (including Birmingham, Edinburgh, Glasgow, Leeds and London (two schemes)). Together with the new equity investment, the LaSalle debt facility sees Apache Capital secure full funding for the first scheme.
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 landmark development scheme that forms part of Peel Group’s £5.5 billion Liverpool Waters regeneration masterplan. Designed by Falconer Chester Hall architects, The Lexington will have 15,000 sq ft 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.
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.”
About LaSalle Investment Management
LaSalle Investment Management, Inc. (together with its global investment advisory affiliates, “LaSalle”) is one of the world’s leading real estate investment managers. LaSalle on a global basis manages approximately $60.5 billion as of Q3 2018 of private and public equity and private debt investments. LaSalle’s diverse client base includes public and private pension funds, insurance companies, governments, corporations, endowments and private individuals from across the globe. LaSalle sponsors a complete range of investment vehicles including separate accounts, open- and closed-end funds, public securities and entity-level investments. LaSalle Investment Management, Inc. is a wholly-owned, operationally independent subsidiary of Jones Lang LaSalle Incorporated (NYSE: JLL), one of the world’s largest real estate companies. For more information please visit www.lasalle.com.
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