Gresham House has secured a three-year £15 million loan from boutique multi-specialist bank Leumi UK to fund the development of 229 sustainable and high-quality build-to-rent apartments in central Sheffield.

The agreement comes as the UK’s build-to-rent sector continues to see impressive growth amid increasing investor recognition of the resilient income opportunity and social benefits for local communities.

The loan was agreed via a majority owned holding vehicle of Gresham House’s British Strategic Investment Fund I (BSIF I). BSIF I is a closed-ended 12-year fund that invests in sustainable and affordable housing, as well as sustainable infrastructure projects, around the UK. The strategy closed last year with commitments worth £300m from several major UK institutional investors, including seven local authority pension schemes. At present the fund has delivered or is in the process of delivering approximately 850 build-to-rent units across UK regional cities and towns.

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The Sheffield project comprises a mix of one and two-bedroom apartments on Scotland Street, a prime location within walking distance of Sheffield city centre’s main retail hub and the city’s two universities. The apartments will be developed by RISE Homes, the development platform of BSIF that specialises in sustainable, high-quality and fairly-priced housing developments in the North and Midlands. Law Firm Addleshaw Goddard advised the lender on the transaction.

Gez O'Sullivan, Relationship Manager, Property Finance at Leumi UK, said: "Leveraging our property finance expertise, this funding solution will support BSIF I's impactful investment strategy and deliver an exciting new rental offering to Sheffield at a time when there is increasing long-term demand for high-quality, affordably-priced rental properties in major urban centres. We look forward to strengthening our partnership with Gresham House over the coming years."