Housebuilder secures refinancing deal for £21m apartment building

Wavensmere Homes has refinanced its £21 million rental apartment building at Nightingale Quarter in Derby city centre.

The three-year £14.7 million deal with the Bank of London and the Middle East (BLME) for Walton House has been arranged following completion of the build programme.

Walton House has been a popular newcomer on the Derby city living scene, with virtually all the 103 one- and two-bedroom apartments already let.

Anthony Cakebread, Wavensmere Homes’ finance director, said: “Re-financing Walton House enables us to retain the building as our largest Build to Rent (BTR) operation.

“We are very pleased to have secured such competitive terms from BLME, which reflects the bank’s appetite to back high-quality BTR schemes, as well as the confidence in the Derby residential market.

“This former hospital that had been derelict for a decade is now a thriving community of owner-occupiers and renters, with over 920 homes, ranging from one-bedroom apartments to three-bedroom houses.

“Walton House’s impressive early occupancy stats speak for themselves as a clear indication of the popularity of renting a fully furnished home direct from Wavensmere Homes.”

Tim Phillips, director of real estate finance at BLME, said: “We are really pleased to have completed our first transaction with Wavensmere Homes through the refinancing of Walton House.

“The combination of a high-quality asset, strong early leasing performance and an experienced sponsor made this an attractive opportunity for BLME.

“Build to Rent continues to benefit from strong long-term fundamentals across the UK, particularly in regional cities where demand for professionally managed rental accommodation remains resilient.”

Located in London Road, between the Florence Nightingale Community Hospital and the Nightingale Quarter residents’ gymnasium, Walton House was the final apartment block to be constructed at Nightingale Quarter, taking 18 months to build and fit out.

In total, the 18.5-acre development incorporates 125 family houses and 800 apartments, together with an extensive range of community amenities.

James Dickens, managing director of Wavensmere Homes, said: “Nightingale Quarter has been incredibly popular on the rental market, with a new standard being set for quality city living in Derby.

“Nightingale Quarter is a landmark legacy project, and we always set out to invest for the long-term, alongside our customers.

“The added advantage of this strategy is that our ongoing ownership of Hardwick and Walton House makes us even more invested in the long-term legacy of the entire site.”