Heim and WYPF secure £50m Homes England backing

The finance package will support European living sector investment manager Heim Global Investor and its partner West Yorkshire Pension Fund to deliver 375 build-to-rent homes at Water Lane, Leeds.

This will be the first investment in Heim’s UK build-to-core fund.

Homes England will provide a £50m development loan over a three-and-a-half-year term. The package also includes a £4.4m grant from the West Yorkshire Combined Authority’s Brownfield Housing Fund.

In a deal announced at UKREiiF 2024, Heim is forward-funding the scheme with equity from its UK Residential Fund which was seeded by Greater Manchester Pension Fund and Merseyside Pension Fund, alongside co-Investment from WYPF.

McLaren Living is the developer and HG Construction the contractor.

Located on Water Lane, in the heart of Leeds’ South Bank regeneration area, the site is a short walk from Leeds city centre, and sits within a zone where 8,000 homes and 1m sq ft+ of commercial pace are earmarked.

Construction began in May 2024, with completion anticipated in early 2027. Once finished, the development will provide 375 one-, two-, and three-bedroom apartments across two interconnected buildings rising to 26 storeys.

The scheme will offer more than 9,000 sq ft of external areas and more than 6,700 sq ft of internal amenity space, including co-working space, a gym, podium gardens, and rooftop terraces.

Heim was advised by CMS with Womble Bond Dickinson advising Homes England.

Christian Birrell, head of UK at Heim Global Investor, said: “Water Lane is a perfect example of our strategy to deliver high quality, affordable rental housing across the UK’s largest cities.

“We are delighted to have now executed our funding strategy, with the support of West Yorkshire Pension Fund, Homes England and West Yorkshire Combined Authority, facilitating the delivery of a major new residential scheme on a Brownfield and underutilised site in Leeds. We are now looking forward to opening our doors to new residents in early 2027”.

Marcus Ralling, interim chief investment officer at Homes England, added: “Heim are playing a vital role in driving the delivery of new homes where they are needed most. This initiative combines public and private funding to deliver 375 new homes in Leeds, a strategic priority place for Homes England.

“This financing solution is an excellent example of how we are working with partners to support housebuilding that is crucial to delivering a diverse and resilient housing sector.”

Hugh Carrow, deputy investment manager at WYPF, said: “We are becoming very active in investing in our home market, where we see strong benefits for the Fund in supporting the delivery of high quality, energy-efficient homes that are in high demand in our region.

“The collaboration between the local Combined Authority, Homes England, Heim Global Investor and our Northern LGPS partners will help deliver a sustainable housing solution which will contribute to the driving local economic growth and the creation of more jobs within our region.”