Vita Group, GMPF net £126m refinancing deal
NatWest and Santander have agreed a debt package with the joint venture, a deal which will also enable improvements at its Vita Living North development at Circle Square in Manchester.
Vita Group partnered with the Greater Manchester Pension Fund in 2017 to deliver the 683-home build-to-rent apartment block, which opened on the former BBC site off Oxford Road in 2022.
The agreed-upon £126m refinancing deal will focus on the Circle Square development and go partly towards the improvement of the its existing social and co-working spaces.
NatWest and Santander were appointed as debt co-ordinators as the joint venture’s existing loan tenor ran out.
NatWest, which was also involved in the original financing of the scheme along with Lloyds Commercial Real Estate and the Greater Manchester Housing Fund, will provide £84m on the deal.
Santander has agreed to provide the remaining £42m.
Matt Jones, relationship director at Santander UK, shared that the company is “absolutely delighted” to commence a relationship with Vita Group.
Michael Slater, chief financial officer at Vita Group, said: “Gaining the backing of these prestigious institutions is of great value for the business and will facilitate the long-term development and operational plans for these market-leading assets.
“Vita Living performs incredibly well in the market, driving demand from city centre renters and achieving high occupancy rates, as a result, it creates a compelling proposition for investors and funds.”
Damini Lad, vice president of structured real estate finance at NatWest Group, added: “NatWest has a long history of supporting the residential market across all tenures, and we are proud to be playing our part in providing high quality, professionally managed homes for the rental market in Manchester.”
Addleshaw Goddard and CBRE provided advice for the lenders. Hill Dickinson acted on behalf of Vita Group, while Avison Young and Trowers advised the Greater Manchester Pension Fund.
Gareth Conroy, director at Avison Young, said: “With Vita Group applying their experience of creating highly desirable places to live, new retail and leisure operators filling up the ground floors, we expect the tenant experience to be enhanced over the coming years, ensuring the popularity of the apartments continues.
“The project is further evidence of the Greater Manchester Pension Fund’s continued investment within Greater Manchester, helping to stimulate the local economy whilst at the same time providing much-needed new homes.”
