Precede Capital Partners provides £188m financing to fund BTR development
Posted on 31 March 2023

We at Precede Capital Partners are thrilled to announce that we have provided a £188 million five-year whole-loan facility to a joint venture between Apache Capital, Harrison Street and NFU Mutual. This loan represents Precede Capital’s second since our partnership with QuadReal Property Group.

The facility will be used to finance the development of Great Charles Street, a £302 million BTR development in Birmingham City Centre that will be developed, managed and operated by Moda Living. The debt funding forms part of the overall funding package for Great Charles Street, with equity being provided by Harrison Street, Apache Capital and NFU Mutual.

David Jerrard, Chief Credit Officer: “We are pleased to be partnering with Apache Capital, Harrison Street, NFU Mutual and Moda on the Great Charles Street scheme, which will directly address rising demand for BTR options in Birmingham, a market characterised by structural under-supply. This latest loan, which is our inaugural deal in the Midlands, is testament to our ability to deliver sophisticated financial solutions for experienced sponsors and developers across the UK.”

Great Charles Street will consist of 722 residential BTR apartments spread across three blocks. The units will range from spacious one-bedroom apartments to three-bedroom apartments with exclusive views over one of Birmingham’s oldest districts, The Jewellery Quarter. Amenities will include a 24-hour concierge, cinema, residents’ lounges, co-working spaces and a gym, as well as over 20,000 square feet of commercial space targeted at local and independent businesses.

The site, which has been undeveloped for more than 50 years, is one of the largest regeneration projects in Birmingham City Centre. Completion of the first block is scheduled for late 2025, with the final block scheduled for delivery in early 2026.

The Great Charles Street project will target BREEAM ‘Excellent’ for its commercial areas and a HQM four-star rating for its residential areas. The electric heating system will contribute to Great Charles Street’s strong energy performance and low Scope 1 and 2 emissions profile, via air source heat pumps, on-site renewables via solar PV and the sourcing of renewable energy for the site through the Renewable Energy Guarantees of Origin scheme.

The facility is Precede Capital’s inaugural transaction in the Midlands and second loan where Moda Living is delivering the project – the first being a £251 million facility for Moda’s flagship London neighbourhood in Nine Elms. The total value of development loans completed by the firm is now almost £1.7 billion.