Merseyside Pension Fund’s Catalyst Fund has agreed an £11.2m loan facility to finance Iliad’s 120-unit scheme in the Rope Walks area of Liverpool.
The loan is the first investment backed by the Catalyst Fund, which was launched in 2016 and is managed by CBRE’s investment advisory team, part of CBRE Capital Advisors.
Iliad’s development, to be named The Eight Building, will comprise a mixture of build-to-rent flats interspersed with for sale units.
It will be adjacent to the first phase of development called St Michael’s Phase 1, a 260-unit student housing project delivered by Iliad in 2013.
It is one of the last sites to come forward in the Rope Walks area of Liverpool, which has undergone a significant transformation over the past 10 years.
Councillor Paul Doughty, chair of Merseyside Pension Fund, said: “As the fund is the Local Government Pension Scheme for the Liverpool City Region, it is rewarding that we are able to provide our members with a commercial return whilst stimulating economic growth in the LCR.”
The fund aims to invest in projects that will help to deliver economic growth to the Liverpool City Region, upgrading the housing offer, regenerating deprived communities and maximising the use of new spaces in the city.
Chris Shorrock of CBRE Capital Advisors said: “This investment represents what the fund was set up to support, economic growth in line with the LCR’s strategy.
“Additionally, we are pleased to support a local developer with significant development experience in Merseyside.
“Part of our strategy for the fund over the past 18 months has been to invest in development finance in the regions as it is scarce and the traditional clearing banks remain averse to funding outside of core areas such as London or without significant pre-sales agreed.
“There are therefore good opportunities for alternative funders to step in, contributing to the regeneration and future-proofing of the local area.”
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