Barings has secured a £96.7m debt facility for a forward funding deal to develop a major residential scheme near Leeds city centre in a joint venture with Glenbrook.
Homes England, Greater Manchester Pension Fund (GMPF) and West Yorkshire Pension Fund (WYPF) will provide a £91m loan over a four-year term and the West Yorkshire Combined Authority has provided a £5.7m grant from its brownfield housing fund to the joint venture partners.
Located on Kirkstall Road next to the River Aire, the scheme will deliver 618 one-, two- and three-bed apartments set across five buildings in extensive landscaped grounds.
The five-acre site will also feature more than 10,000 sq ft of amenity space, including a residents’ lounge, co-working space, a gym, two private roof terraces and 3,800 sq ft of commercial space. Construction has already commenced and is expected to be completed by the end of 2027.
Darren Hutchinson, head of UK real estate transactions at Barings, said: “The Kirkstall Road scheme represents exactly the kind of high-quality, well-located residential investment we seek on behalf of our partners. With the support of Homes England, GMPF, and WYCA, and through our joint venture with Glenbrook, we are delivering a best-in-class residential scheme that will provide much-needed new homes while creating long-term value for our investors.”
Will Church, executive director, lending at CBRE, which advised GMPF and WYPF on the debt facility and worked jointly with Homes England, added: “We are proud to have played a key role in bringing together this trio of lenders to deliver a significant BTR scheme in Leeds. We are seeing a growing interest from pension funds to invest in local markets, in which they will play a key role in the delivery of much needed housing. This loan demonstrates the power of collaboration in delivering large-scale residential projects that will benefit the local community.”
Nigel Barclay, director of loans at Homes England, said: “As the government’s housing and regeneration agency, we are committed to working in partnership with organisations in both the public and private sector, to achieve their ambitions and develop much needed new homes across the country. The Kirkstall Road Scheme is an excellent example of how the agency’s Home Building Fund is delivering in priority regeneration locations whilst supporting small and medium house builders, that are crucial to building a diverse and resilient housing sector.”
Darran Ward, head of alternatives at West Yorkshire Pension Fund, added: “We are proud to support this significant investment in Leeds, helping to deliver high-quality, energy-efficient homes that are much needed in our region. By working alongside our Northern LGPS partner Greater Manchester Pension Fund, and Homes England, we are demonstrating how collaboration between institutional investors and government can drive local economic growth, create jobs, and provide long-term, sustainable housing solutions. This project reflects our commitment to investing in our home market whilst ensuring returns for our members.”
Barings was advised by CMS on all legal aspects of the transaction and Knight Frank’s residential team provided commercial and valuation advice.
