Edmond de Rothschild

Our role

Investec Real Estate provided Edmond de Rothschild Real Estate Investment Management (“Edmond de Rothschild”), the real estate investment management business within the Edmond de Rothschild group, with a 39-month, £19.3 million development loan, to support its construction of a 357-unit Build to Rent (“BTR”) scheme in Rugby, Warwickshire.

Offering a mix of high quality one- and two-bedroom apartments, the development, known as Charolais Gardens, will include a concierge, gym, resident’s lounge and wellness garden and is due to be completed in January 2023. The first phase will be handed over as early as October 2022. Occupying a prominent town centre location, residents will benefit from its excellent train links, with London Euston and Birmingham New Street stations under 45 minutes journey time via the adjacent Rugby station.

The loan is Investec’s first with Edmond de Rothschild, which has made the investment through its Residential Investment Fund UK. Created in 2008, the strategy focuses on the development of affordable BTR assets in UK regional cities. The Fund currently holds 11 assets, with three already stabilised and income producing.

2021 saw a record £3.1bn invested in regional BTR, with 20,000 homes under construction and a further 30,000 with planning approval. The sector has performed strongly against the challenging macroeconomic backdrop. Operators are reporting strong lettings activity and challenges around affordability in the housing market, and changes in the way people are choosing to live, underpinning ongoing demand.

Jonathan Long, Head of Corporate Real Estate, Investec, commented:

“This transaction demonstrates our conviction in high quality, affordably priced Build to Rent schemes that benefit from excellent transport connectivity. The government’s Levelling Up agenda, impact of the Covid-19 pandemic and the sector’s defensive characteristics have seen accelerated investment in, and demand for, rental homes outside of London. Establishing new relationships with high quality counterparties such as Edmond de Rothschild is a key part of our growth strategy and we look forward building a long-term partnership.”

James Whidborne, Head of Fund Management Residential UK at Edmond de Rothschild, added:

“This transaction is further evidence of the appetite for regional Build to Rent from a variety of both equity and debt providers. As a house, affordable UK residential is one of our strongest convictions. We hope this is the start of a strong relationship with Investec as we continue to grow our platform and create and launch a series of products investing in this space.”