The property development firm behind the final phase of Bristol’s Paintworks creative quarter has secured a £40m finance agreement to fund a new raft of developments across the South West.
Rengen, a Bath-based subsidiary of Bristol group Iesis, has arranged the debt funding with the real estate division of Intermediate Capital Group (ICG), the London-based global alternative asset manager, and will used it 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 acquired Paintworks’ fourth and final phase from London-based niche developer Verve Properties in 2019.
Last month it announced it is 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 former Bath Labour Exchange – which it has converted 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 – along with Paintworks’ fourth phase, pictured, and Creswicke House, a student residence in Small Street, Bristol. 
Rengen CEO Iestyn Lewis, the former Bath Rugby and Welsh international who founded Iesis, 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.”
Plans for Paintworks’ final phase were approved in December 2016 and include 92 apartments alongside new office and commercial space.
Once completed, the new buildings will provide around 19,000 sq ft of commercial space – expanding Paintworks’ existing business space, which has become one of Bristol’s top creative sector hubs and a magnet for design and media firms. The scheme’s café/bar and event space have also made it a vibrant cultural destination.
Some 128 car parking spaces are also included in the scheme along with public open space and landscaping works.
