Captima structures £100M Preferred Equity

Captima were engaged by a specialist Private Rented Sector (PRS) developer established by experienced property investors to structure a programmatic equity “war-chest”. Captima identified suitable equity and joint venture alternatives and, following extensive negotiation, structured an agreement with a Private Equity Fund to provide £100 million of Preferred Equity. The equity capital will seed the development of a portfolio of purpose built, high-quality PRS assets across the UK.

Purpose built PRS, often referred to as Build To Rent, is becoming a key institutional asset class and the new equity will help the development team to achieve its goal of delivering up to 10,000 residential units over a 10 year period.

The terms:

PROGRAMMATIC PREFERRED EQUITY
Purpose: To fund PRS project pipeline
Investor: Private Equity Fund
Amount: £100 Million revolving
Preferred Return: 15%
Profit Share: 40% Fund, 60% Sponsor
Up to 95% of costs