Federated Hermes and British Telecom Pension Scheme’s build-to-rent platform Hestia has purchased a residential-led scheme in Brighton, from a joint venture between First Base and The Hyde Group.
Hestia will develop 229 flats and 32,600 sq ft of office space at the Preston Park West scheme to replace the 1960s office, which was previously dubbed “the ugliest building in Sussex”.
Anston House has been derelict for around 30 years and seen more than 20 failed planning applications. First Base and The Hyde Group obtained consent for plans by Terence Conran & Partners in 2016. The scheme was originally intended for market sale, but an agreement was obtained to switch to BTR late last year.
Preston Park West is expected to be one of the greenest spaces in Brighton, and the developers estimate that £139m in economic activity will be created through construction.
It is Hestia’s fourth acquisition since the fund launched last December and brings the UK BTR portfolio to more than 1,000 homes. Last year, Hestia made its first purchases at London Square’s Axion House affordable housing scheme in Lewisham, south-east London, and two neighbouring BTR sites in Leeds.
Will Gibby, director of fund management at the international business of Federated Hermes, said: “This latest Hestia deal reflects our strategy of targeting opportunities to deliver mid-market-range residential assets in locations with strong demand, enabling us to achieve attractive returns for our investors.
“We recognise the importance of creating healthy and attractive spaces that support the wellbeing of our residents and accommodate their wider needs, which is particularly important given the shift towards increased flexible working patterns.”
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