Lloyds Bank PLC has provided a £86m sustainability-linked investment facility secured against three newly-constructed residential apartment blocks in London. The assets were acquired this year by Pictet Alternative Advisors, in partnership with Pinnacle Investments. The portfolio consists of c 290 newly built one-, two- and three-bed apartments in Wandsworth Riverside, Silvertown and Upton Park, acquired from A2Dominion, Redrow/Peabody and Barratt Developments, respectively. They form part of a wider portfolio of 360 apartments, including 70 units in Limehouse, East London.

The new acquisitions were reported by React News earlier this year. Brotherton acted on behalf of the JV in advising on and arranging the debt for the transaction.

Ed Jackson, Principal at Pictet Alternative Advisors said “We’re delighted to have launched this new lending relationship with Lloyds. Our commitment to investing in newly-built, energy-efficient properties has enabled us to benefit from a sustainability-linked margin ratchet, enhancing returns as well as our ESG credentials.”

Sam Shah, Director & Alternative Residential Lead, Global Investor and Listed Clients at Lloyds Bank said “The UK institutional PRS market continues to evolve at pace and is an increasingly important component of overall housing delivery. The support we are providing Pictet will allow them to unlock high-quality-for-rent housing through a bespoke acquisition and stabilisation debt package which also qualifies under our green commercial mortgage offer"

Ben Rustin, Associate Director at Brotherton, said, “Lenders are competing with each other to win mandates in an increasingly competitive market for the UK residential for rent sector. We’re grateful to Lloyds for their reliable and quick execution of a competitive funding package which will support Pictet in establishing an institutionally managed portfolio of private rented sector assets.”