Gresham House agrees £22mn loan with Leumi UK to support Leeds build-to-rent site

Gresham House, has agreed a £22mn loan with specialist lender Leumi UK to fund the development of a 185-unit build-to-rent (BTR) site in Leeds, delivered by Clegg Construction and Rise Homes.

When completed, the Spinners Yard development in Leeds will deliver 185 attractively priced, high-quality one, two and three-bedroom flats as well as a range of amenities including a gym, lounge area and rooftop garden. Regenerating brownfield land in the Mabgate area of Leeds city centre, the project also aligns with Gresham House’s commitment to supporting the provision of sustainable housing. The development is the first in the city to have a private landlord supplying hot water and heating to each flat using a Leeds Council waste plant.

The site will be delivered by Rise Homes, a Gresham House-backed BTR development business. It is also being supported by grant funding from West Yorkshire Combined Authority via its Brownfield Housing Fund, which supports new housing developments on brownfield sites that have been vacant for long periods.

This is the second loan that Gresham House has agreed with Leumi, after previously agreeing a facility to support the 229-unit Ironworks BTR development in Sheffield, which reached practical completion in August 2023.

Gresham House currently has a portfolio of around 1,000 mid-market BTR homes in regional cities and is continuing to expand its operations in the space, delivering high-quality, affordable, and sustainable rented accommodation and offering a solution to the mounting affordability challenges facing renters around the UK. Investor appetite for BTR also continues to grow, with the sector able to provide long-term, asset backed income while delivering a positive impact for local communities.

Joe Thomas, Investment Director at Gresham House, said:

“This development will make a real impact, providing much-needed affordable and well-fitted rental accommodation in Leeds, so we are delighted to have agreed this loan with Leumi UK to support the Spinners Yard project. It is also fantastic to have support from West Yorkshire Combined Authority for the project.

“As interest in build-to-rent housing from institutional investors continues to grow, we look forward to supporting further exciting projects and playing our part in addressing the challenges facing renters up and down the country.”

Gez O’Sullivan, relationship director at Leumi UK, said:

“We are pleased to build on our previous experience working with Gresham House with this loan, which will support a truly impactful project in Leeds. Gresham House’s expertise and experience in the build-to-rent space makes it a natural partner for Leumi, and we look forward to seeing the completion of this much-needed development.”