Capital for sustainability improvements part of LGIM-provided facility

Gatehouse Investment Management (“Gatehouse IM”) has completed a £78 million 55% LTV senior secured bullet refinancing of its UK PRS single-family build-to-rent portfolio with Legal & General Investment Management’s (‘LGIM’s’) dedicated UK and European real estate finance division.

As well as refinancing a previous loan, the facility will enable the implementation of environmental performance improvements on the portfolio’s existing stock. It also provides the headroom to expand the platform size if suitable opportunities arise. CBRE advised Gatehouse IM on the refinancing.

First launched in 2015, UK PRS is a joint venture between Gatehouse IM and the Kuwait Investment Authority. The platform currently comprises 750 homes operated under the DifRent brand, located across nine sites in Greater Manchester, Merseyside and the West Midlands.

The facility underlines the joint venture’s commitment to the single-family Build-to-Rent (BTR) sector, as well as the successful performance of the portfolio to date. It also enables the platform’s continuing emphasis on sustainability features, including its commitment that all homes will have an EPC rating of ‘B’ or higher by the end of 2023.

Florian Graham-Watson, Head of Structuring at Gatehouse IM, said: “We are hugely pleased to have secured this refinancing facility from LGIM, which will not only underpin the targeted expansion of the platform but also enable our ongoing work to improve the sustainability of the properties. The success of UK PRS since its launch has demonstrated the opportunities presented by single-family BTR, and we’re excited to be moving into a new, acquisitive phase for the platform.”

Patrick Sweeney, Investment Manager, LGIM Real Assets added: “This transaction marks the beginning of a relationship-led journey with an experienced management team. We look forward to exploring further deployment opportunities with Gatehouse IM and the Kuwait Investment Authority in the single-family rental sector.

“Despite the wider macroeconomic backdrop and volatility in financial markets our property expertise, experience in the real estate financing market and flexible debt structuring capability allows us to be active and competitive. We take a longer-term sustainable view on property and loan performance with an appropriate risk-based approach.”

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For further information, please contact:

Andrew Jefford, Innesco T: 07986 116 234 E: andrew.jefford@innesco.co.uk

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