NatWest is the latest big corporation to fund build to rent schemes, following in the footsteps of Legal & General and John Lewis, which have both invested in the popular private renting option.
The bank has put up part of the £285 million funding for global investment group EQT Exeter and Sigma Capital Group’s joint venture build to rent schemes housing project to create high-quality apartment blocks and houses in more affordable parts of Greater London and commuter towns.
After agreeing an initial £150 million debt package along with Leumi UK bank earlier this year, the NatWest team brought Allied Irish Bank and Dutch-bank NIBC onboard, which agreed to provide further development finance to build the 3,000 homes.
Local community
Sigma Capital Group, a residential development and urban regeneration specialist, launched the project two years ago with the aim of delivering buildings with strong sustainability credentials; wherever possible, the homes will tap into local community heating networks and utilise photovoltaic panels, include cycle storage and be located near green outdoor areas.
The homes will operate under Sigma Capital’s Simple Life London brand and will be let at affordable rent specific to each location’s average household income.
Graham Barnet (pictured), CEO at Sigma, says: “We thank NatWest and the other institutions within the lending group for supporting organisations such as ours looking to deliver significant social impact by providing housing to renters in affordable locations as well as offering community services within Greater London and its commuter towns.”