Property investor Greystar Real Estate has teamed up with a subsidiary of the Abu Dhabi Investment Authority to develop build to rent housing in London and its commuter towns.
The JV plans to spend £1.8bn on a pipeline of new-build projects, starting with a project in London’s Battersea district where it hopes to build 14,000 sq m of residential and commercial space at Lombard Street.
Both investors are targeting London, following a similar deal in 2015 in the Netherlands, which created a portfolio of more than 6,000 homes for students and young professionals.
To springboard into the London market, the JV has also confirmed it will buy private rental business Fizzy Living from Metropolitan Thames Valley Housing.
This will see its take over management of nearly 1,000 occupied homes and take on 30 Fizzy Living staff, at a portfolio valuation of £400m.
The Fizzy Living assets are well-located and close to public transport in Canning Town, Lewisham, Epsom, Stepney Green, Poplar, Walthamstow, Hayes and Silvertown. Greystar will start capital improvements and other operational enhancements.
Mark Allnutt, senior managing director – Europe, Greystar, said:“Demographic trends and a severe structural undersupply of housing is driving demand for high quality rental homes in the UK, so this remains a high conviction investment strategy for Greystar.
“We have a highly successful relationship with ADIA in the Netherlands and now have a unique opportunity to create a rental housing portfolio of substantial scale in London and its surrounding commuter towns.
“The Fizzy transaction provides us with day one access to eight operational assets and a host of new team members that we are pleased to welcome to Greystar.
“In addition, we will grow the portfolio through our newly formed partnership with ADIA from the ground up.”
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