Heim Global Investor and West Yorkshire Pension Fund secure £50m loan for Leeds BTR scheme

Heim Global Investor, a European living sector investment manager, and investment partner West Yorkshire Pension Fund have secured £50m in development funding from Homes England for the Water Lane project in Leeds, a 375-home build-to-rent scheme. The funding supports the first development in Heim’s UK build-to-core fund. Homes England is providing a £50m development loan over a three-and-a-half-year term. The project has also received a £4.4m grant from the West Yorkshire Combined Authority’s Brownfield Housing Fund. Heim is forward-funding the development with equity from its UK Residential Fund — backed by Greater Manchester Pension Fund and Merseyside Pension Fund — alongside co-investment from West Yorkshire Pension Fund. McLaren Living is acting as the developer, with HG Construction appointed as the main contractor. The site, located on Water Lane in Leeds’ South Bank regeneration area, is just a short walk from the city centre. The South Bank is undergoing major redevelopment, with plans for 8,000 new homes and over 1m sq ft of commercial space, backed by both public and private investment. Construction started in May 2024, with completion expected in early 2027. Once complete, the scheme will deliver 375 apartments—ranging from one to three bedrooms—across two linked buildings up to 26 storeys high. The site will also include more than 9,000 sq ft of outdoor space and over 6,700 sq ft of internal amenities, including co-working areas, a gym, podium gardens, and rooftop terraces. Marcus Ralling, Interim Chief Investment Officer, Homes England, said: “Heim are playing a vital role in driving the delivery of new homes where they are needed most. This initiative combines public and private funding to deliver 375 new homes in Leeds, a strategic priority place for Homes England. “This financing solution is an excellent example of how we are working with partners to support housebuilding that is crucial to delivering a diverse and resilient housing sector.” Christian Birrell, head of UK at Heim Global Investor, said: “Water Lane is a perfect example of our strategy to deliver high quality, affordable rental housing across the UK’s largest cities. We are delighted to have now executed our funding strategy, with the support of West Yorkshire Pension Fund, Homes England and West Yorkshire Combined Authority, facilitating the delivery of a major new residential scheme on a Brownfield and underutilised site in Leeds. We are now looking forward to opening our doors to new residents in early 2027”. Image: FTI Consulting