Joint venture partners JRL Group and Housing Growth Partnership (HGP) have secured an £84.75m development loan from Investec Bank and the Bank of Ireland to fund the delivery of a build-to-rent (BTR) scheme in Luton.
The £145m Castle Street scheme will deliver 414 energy-efficient apartments, communal areas and a wide range of amenities.
The scheme will be delivered by Midgard, JRL’s in-house contracting arm, and managed by VervLife. Construction is already underway with completion expected by December 2027.
Stephen Martin, from Investec Real Estate, said: “We are delighted to be supporting JRL and HGP on this transformative scheme in Luton. With an end value of £145m, Castle Street will deliver much-needed rental housing, creating a vibrant new community and delivering long-term value for residents and the town. This transaction highlights our ability to provide flexible capital to long-standing clients and trusted partners, helping to deliver sustainable housing solutions in undersupplied markets.”
Matthew Beech, from JRL Group, added: “Castle Street builds on our track record of delivering large-scale residential and mixed-use projects across the UK. With Investec and HGP’s support, we are able to deliver a high quality build-to-rent scheme that meets local demand for well-designed rental homes. Our long-standing relationship with Investec and their continued ability to provide tailored funding solutions that enable us to deliver with confidence.”
Colin Bennett, investment director at HGP, said: “This latest scheme with Investec and JRL demonstrates our commitment to partnering with leading developers to accelerate the delivery of much-needed living accommodation across the UK. Castle Street will provide hundreds of sustainable, professionally managed homes, enhancing housing provision in Luton and contributing positively to the wider community.”
