Homes England, GMPF and WYPF will provide a £91 million loan over a four-year term. In addition to this, the West Yorkshire Combined Authority has provided a £5.7 million grant from its brownfield housing fund. Global real estate advisor, CBRE, advised GMPF and WYPF on the debt facility; and worked jointly with Homes England. The scheme is being developed as a joint venture with Glenbrook, a leading UK residential developer, which will retain a stake in the project and act as development manager.

Located on Kirkstall Road, the scheme will deliver 618 one-, two- and three-bed apartments set across five buildings sitting in extensive landscape grounds, including a new public realm, next to the River Aire. The five-acre site will benefit from over 10,000 sq ft of amenity space, including a residents’ lounge, co-working and gym, two private roof terraces and 3,800 sq ft of commercial space. Construction has begun and is expected to be completed by the end of 2027.

All apartments will benefit from air source heat pumps, and PV panels will meet a portion of the electrical demand of the buildings.  The scheme overall will achieve HQM 4* and EPC B, enabling the scheme to meet the LETI 2020 target for upfront embodied carbon and a material reduction in carbon emissions in operation. 

Located just one mile from Leeds city centre and within walking distance of Wellington Place—a key commercial hub—the site offers excellent connectivity. Leeds Central railway station, the busiest outside London, is approximately one mile away, while both the University of Leeds and Leeds Beckett University are easily accessible.

Barings was advised by CMS on all legal aspects of the transaction, with Knight Frank’s residential team providing commercial and valuation advice.

Darren Hutchinson, Head of UK Real Estate Transactions at Barings, said: “The Kirkstall Road scheme represents exactly the kind of high-quality, well-located residential investment we seek on behalf of our partners. With the support of Homes England, GMPF, and WYCA, and through our joint venture with Glenbrook, we are delivering a best-in-class residential scheme that will provide much-needed new homes while creating long-term value for our investors.”

Will Church, Executive Director, Lending at CBRE, said: “We are proud to have played a key role in bringing together this trio of lenders to deliver a significant BTR scheme in Leeds. We are seeing a growing interest from pension funds to invest in local markets, in which they will play a key role in the delivery of much needed housing. This loan demonstrates the power of collaboration in delivering large-scale residential projects that will benefit the local community.”

Nigel Barclay, Director of Loans at Homes England, said: "As the Government's housing and regeneration agency, we are committed to working in partnership with organisations in both the public and private sector, to achieve their ambitions and develop much needed new homes across the country. The Kirkstall Road Scheme is an excellent example of how the Agency’s Home Building Fund is delivering in priority regeneration locations whilst supporting small and medium house builders, that are crucial to building a diverse and resilient housing sector.”

Darran Ward, Head of Alternatives at West Yorkshire Pension Fund, said: “We are proud to support this significant investment in Leeds, helping to deliver high-quality, energy-efficient homes that are much needed in our region. By working alongside our Northern LGPS partner Greater Manchester Pension Fund, and Homes England, we are demonstrating how collaboration between institutional investors and government can drive local economic growth, create jobs, and provide long-term, sustainable housing solutions. This project reflects our commitment to investing in our home market whilst ensuring returns for our members.”

For Barings
Ben Monteith/Tom Carnegie (SEC Newgate)
baringsRE@secnewgate.co.uk

Barings Real Estate
Barings Real Estate (BRE) is a part of Barings and offers a broad range of global investment opportunities across the private debt and equity investment markets. BRE invests in all major property sectors and offers an expansive range of financing solutions to real estate borrowers.  Follow us on LinkedIn at linkedin.com/showcase/barings-alternative-investments.

About Barings
Barings is a $421+ billion* global asset management firm that partners with institutional, insurance, and intermediary clients, and supports leading businesses with flexible financing solutions. The firm, a subsidiary of MassMutual, seeks to deliver excess returns by leveraging its global scale and capabilities across public and private markets in fixed income, real assets and capital solutions.

*As of December 31, 2024

About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2024 revenue). The company has more than 140,000 employees (including Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.

About West Yorkshire Brownfield Housing Fund
For more information about the Brownfield Housing Fund, visit: West Yorkshire Mayor’s £89 million investment to unlock 5,400 new homes.