The developer behind the £140m transformation of a Liverpool city centre landmark has secured a major funding boost.
Legacie Developments has agreed a two-phase £60m loan from the Merseyside Pension Fund's Catalyst for the scheme at Heap's Rice Mill.
Work on the project, which is expected to create 200 jobs and training opportunities, has been underway since the end of last year.
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When complete, the development will contain 620 one and two-bedroom flats while a 16-storey apartment block will also be constructed.
Previously used by Joseph Heap & Sons Ltd, which once ground rice for Kellogg’s Rice Krispies, the Pownall Street site is one of the last surviving warehouse complexes in the area.
The grade II-listed building on the edge of the Baltic Triangle has been empty since 2005, and has had planning permission since 2014.
The development is expected to complete by summer 2025.
The newloan takes Legacie’s institutional finance to over £120m in the first four months of 2023.
John Morley, founder and CEO of Legacie Developments, said: "This is the start of an exciting new lending relationship with the Merseyside Pension Fund.
"The investment will help us bring to life an historic Liverpool landmark - unlocking local jobs, training opportunities and economic growth.
"Having the support of such a prestigious pension fund is a big vote of confidence in our company and the largest funding deal in Legacie's 10-year history.
"I'm really looking forward to delivering hundreds of much-needed new homes and amenity for the city."
Henry Randolph, senior director at CBRE Capital Advisors, added: "We are delighted to have structured this loan on behalf of the Merseyside Pension Catalyst Fund.
"It is a great example of how a local authority pension fund can invest in their own region while maintaining strict risk controls and achieving a commercial return.
"With existing schemes like Parliament Square, Legacie has proven they are capable of successfully developing large placemaking schemes to a high standard.
"At Heaps Mill, the quality of design, provision of amenity and proximity to the best areas of the city will help to make this an attractive scheme for residents."
Chairman of the Merseyside Pension Fund’s Committee, Cllr Pat Cleary, said: "Despite Liverpool being an increasingly attractive city to live and work in, housing completions have remained a fraction of their pre-financial crisis levels, especially for quality schemes with strong environmental credentials, such as Heaps Mill.
"As well as helping to alleviate the housing crisis in Liverpool, the units will be far more environmentally friendly than existing stock, utilising air-source heat pumps, MVHR systems and retaining the historic Heaps Mill building fabric in the redevelopment."
Hill Dickinson advised Legacie Developments on the deal and CBRE is a retained advisor to Merseyside Pension Fund.
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