US PRS giant Greystar has bought half of a Barratt London portfolio initially advertised to the UK market as a potential rental fund seed portfolio.
The US operator, which sources different money for each of its deals, has bought 172 units on three sites: 29 at Aldgate Place, E1, 25 in Fulham Riverside, SW6, and 118 in an entire tower at Nine Elms Point in Vauxhall, SW8.
It paid £140.5m for the flats, equating to about £810,000 each.
Barratt initially put 303 units across four London schemes up for sale. On the open market they had a price tag of around £320m, though there was expected to be a bulk sale discount.
What was originally up for grabs
The flats created considerable interest when they were first put up for sale in March 2016, though there were constraints: they were not purpose built for rent, they were broken up across blocks, and the make-up of the portfolio was not fixed.
The slowing prime market, changes to stamp duty in the March budget and the EU referendum all added complications to any potential deal.
Barratt has since then started to offer phases from its larger schemes to the rental market across entire unbuilt blocks at the Nestle Factory in Hayes, and Meridian Water in Enfield.
Greystar has bought two sites since it entered the UK market in 2015: 400 flats in Millharbour, and the former GlaxoSmithKline and J Lyons site in Greenford. It has submitted planning for 2,000 homes on the development.
The US operator is looking to create a US style, service-orientated rental model in the UK, with alterations to suit UK renters.
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