Border to Coast Pensions Partnership has agreed to but a portfolio of of 12 single-family rental housing estates across the South East from Leaf Living, founded by Blackstone and Regis, in a landmark £400m deal.
Joe McDonnell, chief investment officer at Border to Coast
Border to Coast’s UK Real Estate Fund acquired the 860 homes on behalf of its partner funds in the largest single-family housing deal so far this year.
The estates are located across Berkshire, Essex, Hampshire, Hertfordshire, Oxfordshire, Surrey, East Sussex, West Sussex and Wiltshire.
So far, around 15 of Border to Coast’s partner funds have subscribed to the real estate fund, which is expected to grow to around £3bn in value over the next 12 months.
Joe McDonnell, chief investment officer at Border to Coast, said: “Our focus on high-quality residential property this year is helping reshape our real estate portfolio, future-proofing it for our partner funds.
“Striking a deal of this size is testament to our partnership’s scale and expertise and we are committed to providing additional value to the LGPS and its members. It is also a prime example of how deploying long-term capital can not only unlock access to strong structural opportunities, but also contribute to tackling the country’s infrastructure challenges.”
James Seppala, head of real estate Europe at Blackstone, added: “This transaction reflects strong UK institutional demand for high-quality rental housing platforms, which can offer stable, long-term income.
“Patient institutional capital has an important role to play in bringing further investment into professionally managed housing across the UK and we are delighted to partner with Border to Coast on this important transaction.”
Border to Coast was advised by Aberdeen Investments and Savills.
In May, Border to Coast invested £43m to build a modern aparthotel in Leeds City Centre, while in February, it forward funded a £70m, 139-home development in Springstead Village, Cambridge.
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