Funder on board for residential element of Leeds mixed-use site

• What Federated Hermes’ Hestia has agreed to fund the next phase of Caddick’s £300m Soyo scheme in Leeds
• Why Growing Hestia brand looking to invest in key regional cities
• What next 331 homes to be built by late 2023

Federated Hermes’ build-to-rent brand Hestia has agreed to forward fund the next residential phase of Caddick’s £300m Soyo development in Leeds.

Hestia has struck a deal to fund a 331-home build-to-rent project, which will be delivered by Caddick by the end of 2023. The scheme includes a mix of studio, one, two, and three bedroom apartments along with 12,000 sq ft of retail, restaurant, and ground floor amenity space.

Leeds-based DLG Architects has been appointed to design the scheme, which sits within a wider mixed-use project also featuring additional residential, commercial space, and a hotel.

It is the second funding deal struck by Hestia in the North of England in recent months, with the brand having also backed the second phase of Peel L&P’s Pomona Wharf in Manchester.

Will Gibby, director, fund management – international business of Federated Hermes, said: “Our focus remains on delivering high-quality, mid-market rental properties that drive value for all our stakeholders. The partnership with Caddick on the delivery of this exciting scheme will do just that for Leeds.

“Hestia’s four-year track-record of operating quality BtR assets has allowed us to identify an opportunity of institutional scale, within an exciting regeneration scheme benefiting from quality public realm and cultural amenities. We look forward to bringing this scheme forward with Caddick in the coming years.”

Myles Hartley, managing director of Caddick Developments said: “We are delighted to have secured this opportunity to work closely with one of the world’s leading investment managers and their experienced residential operational platform on their flagship Leeds BtR project.

“Our vertically integrated business provides a wide range of end-to-end services for institutions looking to enter the market and want to work both at scale and at speed. By working collaboratively with others, we expect the built to rent sector to have a hugely positive impact on the UK housing market over the next decade, improving living standards for millions of residents. SOYO will be at the forefront of that ambition.”

TT&G Partners advised Hermes.