The specialist alternative asset manager worked with life insurer Scottish Widows to agree the refinance of five BTR properties in the BSIF portfolio, currently at various stages of completion, two of which are fully operational.
Developed in partnership with Rise Homes, the five buildings are located in regional city centres, including Manchester, Stockport, Coventry and Wolverhampton.
In line with Gresham House’s integrated approach to ESG, the properties have been developed with sustainability in mind, making use of extensively refurbished formerly vacant buildings and integrating renewable energy solutions and sustainable materials in their construction.
The properties also include charging points for electric vehicle use.
The debt facility — arranged in-house by the TradeRisk team, which was acquired by Gresham House in March 2020 — is worth an initial £20m, rising to £30m as the remaining properties are completed.
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Joe Thomas, investment director at Gresham House, said: “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 BTR 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, added: “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 at 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.”