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UK: Investment manager Venn has made two new loans totalling £182 million under the Private Rented Sector Guarantee Scheme (PRSGS), which Venn manages on behalf of the UK Government.
The loans have a five-year tenor and were funded from a new £250 million floating rate bond maturing in
December 2030, issued by PRS Finance plc, the funding vehicle for the PRSGS.
This is the first issuance under the PRSGS since reopening in March 2025 and takes total lending to more than £1.75
billion. The issuance of a new five-year floating rate bond is a direct response to feedback from the Build-To-Rent
(BTR) sector for floating rate loans and complements the existing fixed rate loans the scheme can offer from
fixed rate bonds. Under the Scheme, Venn has around £1.75 billion of further lending capacity to
support the sector.
The first of the two new loans, for £132 million, was provided to a joint venture between Henderson Park and
Greystar in relation to Ten Degrees, a 546-unit operating BTR development in Croydon.
The second loan, for £50 million, was provided to Starlight Investments and will finance Lighthaus, a
BTR development in Liverpool that reached practical completion in November 2025.
The £68 million balance of the bond issuance will be retained to fund other successful loan applications that
are currently being processed.
The new issuance, which is guaranteed by the UK Government, achieved a spread of 52 basis points
over SONIA. Proceeds from the bond issuance are then on-lent directly to borrowers. This funding cost
contributes to an all-in interest rate that provides the sector with cost-effective capital at scale, which meets
borrowers’ requirements in the current market.
Richard Green, partner at Venn, said: “Venn is delighted to mark the re-opening of the PRS Guarantee
Scheme with this very successful funding of two loans for £182 million. The strong appetite from institutional
investors for our bonds allows us to support the Build to Rent sector with dedicated and competitive funding.
We are grateful to have worked with Henderson Park, Greystar and Starlight to finance their high-quality
buildings.”
Martin Liddell, chief financial officer at Starlight Investments, added: “Starlight Investments is very
pleased to finance Lighthaus through the PRS Guarantee Scheme, and we appreciate the successful execution by
Venn in bringing this loan to completion. Lighthaus is an important addition to Liverpool’s housing landscape and
reflects our ongoing commitment to delivering high-quality Build to Rent communities and much-needed new
rental supply across the UK.”
Highlights:
- Investment manager Venn has made two new loans totalling £182 million under the Private Rented Sector Guarantee Scheme (PRSGS), which Venn manages on behalf of the UK Government
- The first of the two new loans, for £132 million, was provided to a joint venture between Henderson Park and
Greystar in relation to Ten Degrees, a 546-unit operating BTR development in Croydon - The second loan, for £50 million, was provided to Starlight Investments and will finance Lighthaus, a
BTR development in Liverpool that reached practical completion in November 2025 - The £68 million balance of the bond issuance will be retained to fund other successful loan applications that
are currently being processed.
