HBD forward-sells £80m Mabgate Yard
Cheyne Impact Real Estate will take the 300-strong Leeds apartment project on following the deal with Henry Boot Group’s development arm.
Cheyne Capital set up its impact real estate fund in 2014. The Leeds deal follows the launch of its Poplin BTR scheme in Manchester last year, where 35% of homes are voluntarily reserved for local key workers at discounted rents and all rental increases are capped.
The Manchester funding deal was agreed in 2021 with Mulbury, and the project delivered by GMI.
HBD secured planning permission for Mabgate Yard in September 2023, with amenities to include co-working and creative spaces and new green space.
Since acquiring the site in December 2020, HBD has provided space for several local charities, including Zarach and MAP Charity, which transformed the building with a 26 ft mural during a workshop for children between 11 and 16 years old.
Ed Hutchinson, managing director at HBD, said: “Following extensive community consultations, we were keen to ensure that the development would be both high quality and have a significant affordable element and identified Cheyne Capital to bring it forward, focusing on delivering social value into an up-and-coming area like Mabgate.
“The development occupies a key strategic gateway site between St James’ Hospital and Leeds City Centre and has real potential to create a thriving community in one of the city’s most popular emerging neighbourhoods.
“As a long-term investor in the city and the wider region, it was important to HBD that we entrust the site to the right buyer with aligned interests. We look forward to seeing Mabgate Yard take shape in Cheyne’s very capable hands.”
Ehtizaz Chaudhry of Cheyne Impact Real Estate, said: “Mabgate Yard will be a best-in-class build-to-rent scheme of up to 310 apartments, providing a significant amount of well-designed amenity space, landscaped gardens, enhanced public realm and ground floor commercial offerings.
“In keeping with our investment philosophy, we will create a high-quality residential scheme to complement the local requirements of this emerging area, adding to our growing portfolio of impact-led and community-centric investments.”