Rengen, the Bath property company behind a number of the city’s recent high-profile redevelopments, has secured a £40m finance agreement to fund a new raft of developments across the South West.
The debt funding agreement with the real estate division of Intermediate Capital Group (ICG), the London-based global alternative asset manager, will be used to buy and refurbish student accommodation or residential schemes.
Some £10m has already been invested in the region, with work underway on a residential-led, mixed-use project in Bath and a second similar scheme due to get underway in Bristol in the near future.
Rengen, which specialises in complex, brownfield sites in sensitive locations, has worked on a wide range of development sectors, including residential, student, leisure, hospitality and commercial property since its launch in 2007.
It is best known for transforming Bath’s former Labour Exchange building on James Street West into a mixed-use scheme with 78 student rooms over three new floors and 4,000 sq ft of commercial space on the ground floor.
Its other Bath projects include Widcombe Social Club and the Sea Cadets headquarters on St John’s Road, and it is behind the Banglo House development on Lower Bristol Road, where it is creating 16 units for key workers with a ground-floor restaurant, and the landmark former Scala cinema in Oldfield Park, which it hopes to partially demolish and refurbish to create a shop, dance studio and flats, pictured.
It is also active in Bristol where its schemes include the final two phases of the city’s Paintworks mixed-use development, where it is helping to create a new creative quarter for the city.
Last month Bath Business News revealed that it was to launch its third £125m investment portfolio to the market, having completed and sold two previous portfolios of high-quality sites in the South West, including the Bath Labour Exchange, and Paintworks IV and Creswicke House in Bristol.
Rengen CEO Iestyn Lewis said: “Rengen and ICG are pleased to be able to deliver some positive news for the region and pledge this commitment of £40m investment.
“It comes at a time of change for the UK given the Covid-19 pandemic and the UK leaving the EU.
While 2020 was extremely challenging for everyone, we are looking forward to a positive 2021 and this investment pledge echoes our confidence in a strong recovery for the South West.”
ICG provided the funding from its Partnership Capital strategy, which provides whole loans and subordinated capital, typically to support refurbishments, redevelopments and other value-add projects, with typical investments ranging from £20m to £100m-plus.
ICG Real Estate co-head Martin Wheeler said: “We are delighted to partner with Rengen. The company has a clear vision for where the opportunity lies and a clear plan on how to deliver it through its experienced management team. A key attraction to ICG is that the opportunity is underpinned by the strong occupational fundamentals of the residential and student sectors in the region.”
Rengen is subsidiary of Bristol group Iesis, which was started by former Bath Rugby and Welsh international Iestyn Lewis.
Rengen’s funding deal with ICG follows its 50-50 joint venture with Bath property firm Longacre to develop 56 studio apartments within the former Eveleigh and Riverside House office building on Spring Gardens Road, overlooking Pulteney Bridge.
The development, known as The Riverside, pictured, will also include approximately 8,000 sq ft of refurbished office space across the ground floor and basement.
