New £85 million development loan for JRL Group and Housing Growth Partnership

Investec Bank plc, a leading international financial services provider, today announces that its Real Estate team, along with the Bank of Ireland, has provided an £84.75 million senior development loan to a joint venture between JRL Group, the UK-based developer, housebuilder and construction group, and Housing Growth Partnership (“HGP”), the Lloyds Banking Group and a Homes England-backed equity investor.

The facility will fund the development of Castle Street, a £145 million build-to-rent (“BTR”) scheme in the heart of Luton. The project will deliver 414 new, energy-efficient apartments with professional on-site management by VervLife, offering residents extensive amenities and well-designed communal areas that foster a vibrant new community. Construction is underway, with completion expected by December 2027. The scheme will be delivered by Midgard, JRL’s in-house contracting arm.

Stephen Martin, Investec Real Estate, said: “We are delighted to be supporting JRL and HGP on this transformative scheme in Luton. With an end value of £145 million, Castle Street will deliver much-needed rental housing, creating a vibrant new community and delivering long-term value for residents and the town. This transaction highlights our ability to provide flexible capital to long-standing clients and trusted partners, helping to deliver sustainable housing solutions in undersupplied markets.”

Matthew Beech, JRL Group commented: “Castle Street builds on our track record of delivering large-scale residential and mixed-use projects across the UK. With Investec and HGP’s support, we are able to deliver a high-quality build-to-rent scheme that meets local demand for well-designed rental homes. Our long-standing relationship with Investec and their continued ability to provide tailored funding solutions that enable us to deliver with confidence.”

Colin Bennett, Investment Director at HGP, added: “This latest scheme with Investec and JRL demonstrates our commitment to partnering with leading developers to accelerate the delivery of much-needed Living accommodation across the UK. Castle Street will provide hundreds of sustainable, professionally managed homes, enhancing housing provision in Luton and contributing positively to the wider community.”

Investec seeks to partner with clients in their efforts to reduce carbon emissions by lending to projects that contribute to a transition to a lower-carbon economy. This focus reflects its ambition to promote sustainable growth and environmental responsibility, as well as its intention to work towards Net Zero goals by 2050. These goals are enabled through activities including sustainable and transition finance and encouraging clients to pursue decarbonisation efforts.