NatWest has provided a £21.3 million development finance facility for Cheyne Impact Real Estate’s project in Oldham Road, Manchester.

The development, which is due to top out this month, will be mixed tenure with 35% of the 144 homes allocated to local key workers at a significant discount to market-rate rent.  In keeping with all of Cheyne Impact Real Estate’s projects, the accommodation will be ‘tenure blind’ with no difference in specification or service between the homes offered at discounted rent and those at full market rate.

Following acquisition, Cheyne substantially reconfigured the development, lifting the average EPC rating to B, upgrading the specification, and converting space previously designated as commercial into communal work, entertainment and relaxation spaces for residents.

Laurus Property Partners advised Cheyne on the financing of the scheme.

Phil Hooper, Head of Real Estate at NatWest said: “We are delighted to support Cheyne Impact Real Estate in the delivery of 144 new build-to-rent homes which help to provide much needed UK housing and include homes solely designated for key workers at discounted rent.”

Andrew Wheldon, managing director at Laurus Property Partners, added: “The current inflationary pressures and rising interest rates mean that the Build-to-Rent sector is set to play an increasingly central role in the UK housing market.  Given that it is key workers who often feel these pressures most acutely, it has been a pleasure to assist Cheyne in its delivery of high quality, affordable homes for key workers in Central Manchester.”

Andrew Sergeant of Cheyne Impact Real Estate concluded: “We are pleased to be partnering with NatWest on this exciting journey where we aim to demonstrate that high quality, aspirational homes can be provided by impact-led institutional investors at affordable rents.”