West Yorkshire’s Moda Living partners with Apache Capital Partners to develop £1bn portfolio

West Yorkshire’s Moda Living is forming a strategic Joint Venture with the London-based private real estate investment management firm Apache Capital Partners in a deal that could be valued around £1bn.

Moda Living, formed through a partnership between Caddick Group Plc and Generate Land Ltd, will work with Apache Capital to plan, develop, deliver and operate a leading premium PRS portfolio, located in major sites across UK cities.

The aim is to create 5,000 units and a gross development value (GDV) of £1bn.

After more than two years of due diligence, this venture establishes Apache Capital as the long term funding partner of Moda Living. It will also form the largest owner of regional purpose-built PRS and one of the largest owners of PRS overall in the UK.

The portfolio focuses on regional centres where rental and capital is set to grow over the next few years due to population growth and an undersupply of residential accommodation.

The partnership’s seed asset is Angel Gardens, Manchester, located in the centre of the Co-op and Hermes 20 acre Noma masterplan and bordering the vibrant and attractive Northern Quarter.

This development includes a 36-storey tower, featuring 458 stylish units, high quality gardens and resident amenities tailored for the Private Rented Sector. In a complex with unparalleled public realm, co-locating retail and high quality bar and restaurant space, Angel Gardens is expected to set the new standard for luxury, contemporary living in Manchester.

Richard Jackson, co-founder and managing director of Apache Capital Partners, said:

“At Apache Capital, we have seen a strong demand from our Middle Eastern investors in the UK’s Private Rented Sector. This is partly because PRS is already an established sector in the region, the sector’s continuing supply/demand imbalance in the UK, but also coupled with the prevailing lifestyle shift toward flexible living that delivers high quality amenities and services. Following two years of intensive due diligence, we, at Apache Capital, are very pleased to be forming this strategic Joint Venture with Moda Living, our development and operating partner.

“The 5,000 unit secured portfolio provides us immediate scale and Apache Capital and Moda Living will currently be the largest owner of regional purpose-built PRS and the second largest owner overall in the UK.

“This strategy builds on the success of Apache Capital’s Social Infrastructure investment platform, where we have aggregated an institutional grade portfolio of assets in the student accommodation and healthcare sectors.”

Johnny Caddick, director of Moda Living, added: “We’re really pleased Apache Capital acknowledge and understand the vision Moda Living has to deliver a best-in-class PRS product and we are looking forward to delivering our portfolio with them as our strategic partners.

“Traditional views on renting are changing and more people are looking towards PRS for long-term tenure. With this in mind Moda Living’s aspirations are to create lifestyle developments that focus on putting the tenants – our customers – at the heart of the concept. This will ensure we constantly evolve to stay ahead of the market and the changing face of renting as we know it, which enables us to create living spaces that are tailored specifically for city-centric lifestyles.”

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