UK: NatWest and Leumi UK will provide debt packages to support EQT Exeter and Sigma Capital’s residential joint venture to bring affordable new rental homes to Greater London
In September 2020, EQT Exeter (formerly EQT Real Estate) the real estate arm of global investment organisation, EQT, and Sigma Capital Group, a residential development and urban regeneration specialist, launched a new joint venture to build high-quality, well-located apartment blocks and houses in more affordable parts of Greater London and its commuter towns.
The project, named Saturn, delivers buildings with strong sustainability credentials: where possible, the homes tap into local community heating networks and utilise photovoltaic panels. Saturn will also promote sustainable living practices – the developments will, for example, include ample cycle storage and will typically be located near green outdoor areas.
Saturn has an initial capacity for an investment portfolio of approximately 3,000 homes, with a total value of over £1 billion.
NatWest’s flexible debt package supports the joint venture’s current schemes and future acquisitions
NatWest’s Structured Real Estate Finance team arranged a £150 million scalable debt package supporting the current Saturn portfolio and future development pipeline.
The funding comprises an investment facility and a revolving development facility which is funded by NatWest and Leumi UK, the subsidiary of Israel’s leading international bank, Bank Leumi.
Lee Franklin, structured real estate finance director at NatWest, said: “The team is delighted to support two NatWest customers with a debt financing package that will help deliver much-needed homes across Greater London. We are looking forward to continuing our relationship with EQT Exeter and Sigma Capital as they deliver positive change with a sustainable agenda.”
Gez O’Sullivan, property finance relationship manager at Leumi UK, said: “The Leumi UK Property Finance book is growing, and we are thrilled to be able to facilitate this growth with high calibre, new-to-bank customers in the form of EQT Exeter and Sigma Capital. They both have a fantastic reputation and their JV strategy for providing sustainable and affordable homes aligns with our own ambitions in the market. What is more, we are very happy to be working with the team at NatWest again, to continue to deepen our already strong relationship as lenders.”
Graham Barnet, CEO at Sigma Capital, added: “We are delighted to be expanding our delivery of new rental homes in the UK with our London-focused joint venture with EQT Exeter, and we are very pleased about the flexible financing package that allows us to execute our business plan.”
