South West property company Rengen has entered a £40m debt funding agreement with the real estate division of Intermediate Capital Group plc (ICG), a global alternative asset manager in private debt, credit and equity.
The funding line will be used to buy and refurbish student accommodation or residential schemes across the south west of England with a focus on Bath and Bristol.
Bath-based Rengen provides global property services and has experience across a wide range of development sectors including residential, student, leisure, hospitality and commercial property. The business focuses on the delivery of complex, brownfield sites in sensitive locations. It has completed and sold two previous portfolios of high quality sites in the South West including the Labour Exchange (Bath), Paintworks IV (Bristol) and Creswicke House (Bristol and is about to launch its third £125m investment portfolio to the market.
ICG provided funding from its Partnership Capital strategy, which provides whole loans and subordinated capital, typically in support of refurbishments, redevelopments and other value add projects, with typical investments ranging from £20m-£100m+.
The partnership has already seen an initial £10m investment in the region with work underway on a residential led mixed-use project in Bath and a second similar project due to commence in Bristol in the near future.
Rengen CEO, Iestyn Lewis, said, “Rengen and ICG are pleased to be able to deliver some positive news for the region and pledge this commitment of £40 million investment. It comes at a time of change for the UK given the Covid-19 pandemic and the UK leaving the EU.
Whilst 2020 was extremely challenging for everyone, we are looking forward to a positive 2021 and this investment pledge echoes our confidence in a strong recovery for the South West.
Martin Wheeler Co-Head of ICG Real Estate said, “We are delighted to partner with Rengen. The company has a clear vision for where the opportunity lies and a clear plan on how to deliver it through its experienced management team. A key attraction to ICG is that the opportunity is underpinned by the strong occupational fundamentals of the residential and student sectors in the region.”
Rengen and ICG are looking for additional opportunities across the region. For more information contact: MAIL@RENGENDEVELOPMENTS.COM
Pictured above: The Labour Exchange building in Bath, a former Rengen project