London, 15 March 2022
Macquarie Asset Management, on behalf of its institutional clients, has entered a forward funding agreement with developer Noviniti for the construction of a multi-storey car park at Queen Alexandra Hospital in North Portsmouth, England.
The four-storey development will increase the provision of on-site public car parking from 294 to 541 spaces, as well as include the installation of electric vehicle charging stations and an elevated bridge to the hospital. Scheduled for completion in the middle of this year, the carpark will be leased to the Portsmouth Hospitals University NHS Trust helping to improve patients’ and visitors’ accessibility and alleviate traffic congestion in the area.
Macquarie Asset Management’s bespoke forward funding investment provides its institutional clients with access to a high quality 30-year index-linked income strip. The transaction marks Macquarie Asset Management’s first income strip financing, following the hire of Hugo James and Tom Benham to launch a secure income real estate strategy.
Hugo James, a Managing Director within Macquarie Asset Management, said “This transaction is an important milestone for our team as we continue to seek out more forward-funding income strip opportunities and provide stable returns to our long-term investors. We are pleased to have created a bespoke lease and funding structure for Noviniti, and we hope this is the start of a successful long-term partnership together.”
Jonathan Houlston, Chief Operation Officer at Noviniti, said “The Macquarie team’s deep expertise in infrastructure and real-estate financings and their understanding of our unique needs, allowed us to explore alternative financing options and secure funding quickly and efficiently. Now with this funding, we’re proud to be able to deliver a car park that will provide much-needed space to the users of the hospital for many years to come.”
Macquarie Asset Management expanded its private credit offering with the launch of a secure income strategy in December 2020, initially targeting investment opportunities in ground leases. The transaction follows the team’s financing of a long-term lease with the London Borough of Bromley to deliver 50 affordable homes in April 2021. Since 2012, Macquarie Asset Management’s private credit platform has invested more than $US12 billion in a diverse range of infrastructure debt long-term real estate investment strategies1.
Noviniti is an innovative and solutions driven developer working in partnership with the public and private sectors and leading blue-chip organisations. Their mission, put simply, is to bring high quality building solutions to their clients that deliver architectural impact and functionality – underpinned with tailored financing solutions.
Noviniti works with their clients to understand their needs and develop solutions to deliver exceptional facilities that transform their site. Their team works collaboratively and in partnership with their clients to deliver best value solutions both architecturally and financially.
Noviniti manages every aspect of a development project including design, planning, legals and contracts. They are committed to pioneering new technologies and developing funding models to deliver often complex real estate projects. They believe that their developments should be ecologically friendly, commercially sustainable, energy efficient and should have a positive impact upon the people who use them and the environment in which they are built.