Apache Capital Partners agrees GBP76m financing with LaSalle & Wells Fargo
Apache Capital Partners, the London and Gulf based private real estate investment management firm, has agreed a new five year GBP76 million secured debt facility.
LaSalle Investment Management (LaSalle) acted as underwriter and arranged the GBP76 million facility, which is secured against Apache Capital’s Paul Street Central London premium student accommodation asset. The facility comprises GBP21 million of mezzanine finance provided by LaSalle and a further GBP55million of senior debt which LaSalle syndicated to Wells Fargo shortly after completion.
Apache Capital originally acquired the site in 2013 and developed Paul Street, Shoreditch, London EC2, in conjunction with JV Partner McLaren Property (McLaren). The Central London premium student accommodation and office scheme was completed in the summer of 2015 and, following practical completion, Apache Capital acquired McLaren Property’s interest.
The property comprises 456 high specification units and communal facilities and has achieved 100% occupancy in its first year, 2015/16. The scheme also comprised a separate 43,000 sq ft office building, which was pre-sold to Helical Bar.
Richard Jackson, Co-Founder and Managing Director of Apache Capital Partners, says: “This GBP76 million refinancing with LaSalle and Wells Fargo has enabled Apache to acquire our JV partner McLaren’s 25% shareholding in the Paul Street asset, to distribute capital to shareholders and maintain a long term hold of the asset, so that our investors can benefit from stable income streams and capital growth.
Apache pursues long term investment strategies which deliver sustainable returns to investors and provide high quality assets, amenities, operations and services to our customers who live there. Paul Street, part of our Social Infrastructure platform, is a prime example of this. The Company invested early into the student sector and we are now benefiting from the increasing maturity and institutional allocation of capital in the market.”
Amy Klein Aznar, Head of Debt and Special Situations, LaSalle Investment Management, says: “LaSalle is delighted to have supported Apache Capital with its new GBP76 million facility for their prime Central London Paul Street student accommodation asset. The facility has enabled us again to support an experienced team in Apache Capital and further demonstrates LaSalle’s commitment to real estate lending, having completed debt investments of c.GBP700m over the past 16 months. We have lent c.GBP230 million in the UK student housing sector over the past 36 months and believe in the strong fundamentals of the sector. We very much look forward to working with both Apache Capital and Wells Fargo in the near future.”
Tim Gibb, Director at Wells Fargo, adds: “Wells Fargo is pleased to have partnered with LaSalle to assist Apache Capital with the acquisition of Paul Street. This loan demonstrates our appetite for senior debt in the student housing sector. We look forward to working further with both Apache Capital and LaSalle in the near future.”