News

Case Study

NatWest and Leumi UK support EQT Exeter and Sigma Capital’s residential joint venture to bring affordable new rental homes to Greater London

Posted: 9th February 2022   |   Share

Project Saturn

Delivering thousands of high-quality rental homes for sustainable living

In September 2020, EQT Exeter (formerly EQT Real Estate) the real estate arm of global investment organisation, EQT, and Sigma Capital Group, a residential development and urban regeneration specialist, launched a new joint venture to build high-quality, well-located apartment blocks and houses in more affordable parts of Greater London and its commuter towns.

The project, named “Saturn”, delivers buildings with strong sustainability credentials: where possible, the homes tap into local community heating networks and utilise photovoltaic panels. Saturn will also promote sustainable living practices – the developments will, for example, include ample cycle storage and will typically be located near green outdoor areas.

Saturn has an initial capacity for an investment portfolio of approximately 3,000 homes, with a total value of over £1 billion.

NatWest’s flexible debt package supports the joint venture’s current schemes and future acquisitions

NatWest’s Structured Real Estate Finance team arranged a £150 million scalable debt package supporting the current Saturn portfolio and future development pipeline.

The funding comprises an Investment Facility and a Revolving Development Facility which is funded by NatWest and Leumi UK, the subsidiary of Israel’s leading international bank, Bank Leumi.


Delivering positive change with a sustainable agenda

Lee Franklin, Structured Real Estate Finance Director at NatWest, commented: “The team is delighted to support two NatWest customers with a debt financing package that will help deliver much-needed homes across Greater London. We are looking forward to continuing our relationship with EQT Exeter and Sigma Capital as they deliver positive change with a sustainable agenda.”

Gez O’Sullivan, Property Finance Relationship Manager at Leumi UK, said: “The Leumi UK Property Finance book is growing, and we are thrilled to be able to facilitate this growth with high calibre, new-to-bank customers in the form of EQT Exeter and Sigma Capital. They both have a fantastic reputation and their JV strategy for providing sustainable and affordable homes aligns with our own ambitions in the market. What is more, we are very happy to be working with the team at NatWest again, to continue to deepen our already strong relationship as lenders.

Peter Shacalis, Managing Director, Investment and Asset Management, UK, said: “EQT Exeter is thrilled to be investing into the London residential market, one with a severe supply shortage of professionally managed, high-quality, good value homes to rent, with Sigma Capital. We are grateful for the continued support of NatWest and Leumi UK.”

Graham Barnet, CEO at Sigma Capital, added: “We are delighted to be expanding our delivery of new rental homes in the UK with our London-focused joint venture with EQT Exeter, and we are very pleased about the flexible financing package that allows us to execute our business plan.”

 

Note to editors:
Property Finance at Leumi UK
Bank Leumi (UK) plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

 

About EQT Exeter
EQT Exeter is a global real estate solutions provider serving corporate and consumer tenants with scope and scale. EQT Exeter is among the largest real estate investment managers in the world and is focused on acquiring, developing and managing logistics/industrial, office, life science and residential properties in Europe, the Americas and Asia. EQT Exeter was created through the combination of EQT Real Estate and Exeter Property Group. The EQT Exeter Team comprises more than 300 experienced professionals operating in close to 40 regional offices around the globe. Collectively they have consummated over 830 real estate investments. As part of EQT, the team has access to the full EQT Network including more than 600 industry advisors across the globe as well as EQT’s industry-leading sustainability credentials and framework, and in-house digitalization skills.

 

About Sigma Capital Group Limited (formerly Sigma Capital Group plc)
www.sigmacapital.co.uk

Sigma is a PRS, residential development, and urban regeneration specialist, with offices in Edinburgh, Manchester and London, and is part of PineBridge Investments, a private, global asset manager with $133bn in assets under management as at March 2021.

 

Sigma’s principal focus is on the delivery of large-scale housing schemes for the private rented sector. The Company has a well-established track record in assisting with property related regeneration projects in the public sector, acting as a bridge between the public and private sectors.

 

Sigma has created an unrivalled property platform, which sources sites and brings together construction resource to develop them, enabling Sigma to deliver an integrated solution to partners. As well as sourcing sites and managing all stages of the planning and development process, Sigma also manages the rental of completed homes through its award-winning rental brand ’Simple Life’ and ‘Simple Life London’. The Company’s subsidiary, Sigma PRS Management Limited, is Investment Adviser to The PRS REIT plc.

 

About NatWest

NatWest is a relationship bank for a digital world. We champion potential; breaking down barriers and building financial confidence so the 19 million people, families and businesses we serve in communities throughout the UK and Ireland can rebuild and thrive. If our customers succeed, so will we.