Wavesmere completes £15m refinancing deal at Derby scheme
Wavensmere Homes has refinanced its Walton House rental apartment building at Nightingale Quarter in Derby city centre with the Bank of London and the Middle East.
The three-year deal follows completion of the £21m five-storey building, which contains 103 one- and two-bedroom apartments.
BLME has provided a £14.7m commercial mortgage at 70% loan-to-value, with a 1.75% margin. The deal was brokered by Oliver Holden of Big Property Finance Group.
Walton House, on London Road, was the final apartment block to be built at Nightingale Quarter, the 900-home residential scheme built on the site of the former Derby Royal Infirmary building. Construction and fit-out took 18 months.
Walton House was the final building to be completed at Nightingale Quarter. Credit: Wavensmere.
“Re-financing 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,” said Anthony Cakebread, Wavensmere Homes’ finance director.
“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.”
Tim Phillips, director of real estate finance at BLME said the firm was pleased to have completed its 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,” he said.
“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.”
The Birmingham office of Knights acted for Wavensmere, while BLME’s legal representative was Mishcons de Reya.
