Gresham House has secured a three-year £15m loan for the Founders Yard BTR development in Sheffield.
The finance was provided by boutique bank Leumi UK to Gresham House’s British Strategic Investment Fund I.
The fund closed last year with £300m in commitments from several UK institutional investors, including seven local authority pension schemes. It is backing some 850 BTR homes across the UK.
The Sheffield scheme will see 229 homes at the site of the former Queens Hotel on Scotland Street. Construction began at the start of this year.
BSIF first backed developer Rise Homes in 2019 with a view to creating a platform delivering social impact through affordable BTR targeting key workers. The platform includes completed schemes in Manchester and Stockport.
Joe Thomas, investment director of housing at Gresham House, said: “This loan will enable BSIF I to deliver its pipeline of sustainable mid-market build-to-rent housing – a strategically important area within the UK’s broader residential sector.
“The build-to-rent space remains a compelling investment opportunity, with resilient income streams thanks to the residential sector’s inelastic demand characteristics. The development of the scheme will make a meaningful impact towards meeting the needs of Sheffield’s growing population of renters.”
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