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Trowers & Hamlins advises Apache Capital on PRS joint venture with Moda Living

Trowers & Hamlins advises Apache Capital on PRS joint venture with Moda Living

Angel Gardens scheme in Manchester's NOMA site confirmed as the JV's seed asset

Trowers & Hamlins is pleased to have advised long-standing client Apache Capital Partners LLP (Apache), the London and Gulf-based real estate investment management firm, on the formation of a strategic joint venture (JV) with Moda Living Ltd.  The JV will plan, develop, deliver and operate a major private rented sector (PRS) portfolio across prime sites in UK regional cities.  The JV's PRS pipeline comprises approximately 5,000 units and has a gross development value of £1 billion.

Apache and Moda Living have announced that the seed asset for the JV is Angel Gardens, a 34-storey PRS development scheme in central Manchester, which was acquired by the Apache and Moda Living JV in December 2015.  The 520,000 sq ft property, which has a gross development value of £128 million, is at the centre of the wider £800 million NOMA regeneration project, a 20-acre mixed-use scheme near Manchester's Victoria Station.  NOMA is the largest development project in the North West of England.

When completed, Angel Gardens will offer 458 apartments finished to a high specification.  It will also include a seven-storey glazed foyer, a cinema room, gym, four restaurants, retail units, digital integration and a multi-functional roof terrace.

Richard Jackson, co-founder and managing director of Apache, told  "The PRS market in the UK is worth £900 billion and growing, yet remains fragmented and presently overwhelmingly dominated by small, private-let landlords.  We are focused on that significant gap between increasing tenant demand and the undersupply of institutional grade and scale of stock in PRS, which will be the next institutional assets class, as we have seen with the student accommodation market."

Trowers & Hamlins Corporate partner Nick Harrisingh, who led the deal team advising Apache, added:  "We have advised Apache on numerous student accommodation deals and have seen first-hand the successes they have had with that asset class here in the UK.  The formation of this strategic JV and its move into the wider PRS market reflects the ambitious plans Apache has in place to grow its portfolio of institutional grade assets." 

In addition to Nick Harrisingh, the Trowers & Hamlins team advising Apache included client partner Bill Jefferies, Real Estate partner Julian Keith and Real Estate associate Chris Hourihan, Projects and Construction partner Peter Kitson, and Tax senior associate Michael Surry, with the firm's Manchester Banking and Finance team advising on the debt finance.