Wavensmere Homes has refinanced the Walton House build-to-rent (BTR) apartment scheme at the Nightingale Quarter in Derby city centre with the Bank of London and the Middle East (BLME).
The three-year finance deal for Walton House has been arranged following completion of the build programme and the £14.7m commercial mortgage has been provided at BLME’s 70% LTV rate, reflecting a 1.75% margin.
Virtually all of the 103 one- and two-bedroom apartments are already let at the five-storey red brick building.
Tim Phillips, director, real estate finance at BLME, said: “We are really pleased to have completed our first transaction with Wavensmere Homes through the refinancing of Walton House. The combination of a high quality asset, strong early leasing performance and an experienced sponsor made this an attractive opportunity for BLME. Build-to-rent continues to benefit from strong long-term fundamentals across the UK, particularly in regional cities where demand for professionally managed rental accommodation remains resilient.”
Anthony Cakebread, Wavensmere Homes’ finance director, added: “Refinancing Walton House enables us to retain the building as our largest build-to-rent operation. We are very pleased to have secured such competitive terms from BLME, which reflects the bank’s appetite to back high quality BTR schemes, as well as the confidence in the Derby residential market.
“This former hospital that had been derelict for a decade is now a thriving community of owner-occupiers and renters, with over 920 homes, ranging from one-bedroom apartments to three-bedroom houses. Walton House’s impressive early occupancy stats speak for themselves as a clear indication of the popularity of renting a fully furnished home direct from Wavensmere Homes.”
James Dickens, managing director of Wavensmere Homes, said: “Nightingale Quarter has been incredibly popular on the rental market, with a new standard being set for quality city living in Derby. Walton House continues to achieve top rents, due to the professionally styled and furnished interiors, city views, parcel storage facility, EV car charging, and close proximity to the critically acclaimed Pepperpot restaurant, Derby train station, and all the shops and attractions. This is in the context of the city being underserved by stylish apartment schemes, when compared to so many other regional cities.”
Big Property Finance Group brokered the deal. The Birmingham office of Knights acted for Wavensmere and BLME’s legal representative was Mishcon de Reya.
