‘Major vote of confidence’ as Moda Living secures investment to develop 7,000 apartments
Property developer Moda Living has secured new investment to support the delivery of thousands of rental apartments across the UK.
A new joint venture between Moda backer Apache Capital and US investor Harrison Street, with additional investment from the National Farmers Union Mutual (NFUM), will support Moda’s plans to build over 7,000 rental apartments in six UK cities.
Harrogate-based Moda Living, part of family-run building firm Caddick Group, has a £2bn pipeline of homes for rent.
The seven Moda developments included in the deal with NFUM and Harrison Street include Broad Street in Birmingham; The Lexington in Liverpool; Holland Park in Glasgow; Springside in Edinburgh; New York Square at Leeds’ SOYO scheme; and two sites in London.
Each will be invested in over the coming 20 months as they are brought forward for construction.
Moda’s Angel Gardens development, part of the NOMA district in Manchester, is not included in the platform.
Johnny Caddick, MD of Moda Living, said: “This is a huge milestone for Moda that will underpin the creation of thousands of new homes for rent, supporting major investment into many of the UK’s major cities.
“Being able to attract long-term, institutional capital is crucial if we are to build more homes.”
He added: “This is a major vote of confidence in build-to-rent and proof positive that Moda is well positioned to continue expanding and look at further acquisitions over the coming year.”
John Dunkerley, co-founder and chief exec of Apache, commented: “Harrison Street has been investing in and developing student housing assets in the UK since 2015 and we look forward to partnering with them and NFU Mutual as we expand our portfolio, which we will fund and operate with long-term institutional build-to-core investors.”
Rob Mathias, senior managing director of Chicago-headquartered Harrison Street, said of the deal: “We have been closely watching the UK residential market for some time, and are pleased to bring the experience we have acquired investing in and developing high-quality purpose-built student accommodations across the UK, to this venture.”
NFUM property investment manager Tom Bostock commented: “We are pleased to make our first investment in build-to-rent, diversifying into a new and emerging sector in the UK.
“We identified Apache Capital as a long term partner with a unique premium portfolio that’s been carefully secured and being developed by them in partnership with Moda.”
Apache Capital was represented in the deal by Trowers & Hamlins, JLL and Macfarlanes, while Gowling and Knight Frank acted for NFUM. Dentons and DLA Piper provided legal advice to Harrison Street.