US build-to-rent giant Greystar’s discussions to buy or co-invest in Inhabit’s £1bn portfolio of rental sites in the UK have collapsed.
Talks concerning the 3,300-home portfolio, the majority of which have been granted planning consent, had begun in April.
The properties, which included city centre sites in Manchester, Birmingham, Leeds, Bristol and Liverpool, as well as Glasgow and Aberdeen, had a combined gross development value of around £1bn.
Alongside the rental homes were more than 1,000 student beds, 75,000 sq ft of shops and leisure space and a hotel.
Greystar was exploring a potential purchase concerning the residential elements, excluding the student assets, but may not have bought all of them.
It conducted due diligence on a possible investment over the summer, but the parties did not reach an agreement on pricing.
Inhabit has now quietly begun to put its seven sites up for sale, as either land or individual development opportunities, which may not necessarily involve private rented sector elements.
It is understood that Knight Frank has been appointed to advise on the English assets, while Dougray Smith is marketing the Scottish properties.
A senior departure
Inhabit was set up as a PRS company in early 2016, with Ana Nekhamkin as its managing director, and was seeded with the seven sites.
It has since emerged that Nekhamkin left the business in November to join San Francisco-based hospitality start-up Sonder as director of real estate expansion in Europe.
Michael Kovacs and Brandon Hollihan – the pair who run investment group Castleforge – are still both listed at Companies House as directors of Inhabit Residential.
Since entering the UK market in 2013, Greystar has built up a property portfolio worth £4.5bn, representing more than 32,000 units and comprising both student housing and multifamily rental accommodation.
The company, which is one of the UK’s most active build-to-rent investors, operates student brand Chapter and is a shareholder in student accommodation provider iQ.
All parties declined to comment.
Inhabit’s sites – What we know
- Manchester – 10-12 Whitworth Street: Planning granted for 327 apartments.
- Liverpool – Heaps Rice Mill (pictured above): Consent for 797 units as well as ground floor commercial space.
- Leeds – City Reach: Plans approved for 818 build-to-rent homes, 240 for-sale homes, 309 student beds and 9,902 sq ft of commercial space.
- Glasgow – Candleriggs: Planning for 504 homes, 377 for rent, a 124-bed hotel and 597 student beds.
- Aberdeen – Broadford Works: Plans approved for 590,000 sq ft development of 460 homes as well as 430 student beds.
- Birmingham – Cornwall House: No significant planning history for redevelopment.
- Bristol – BS1: Will be marketed in the new year.
To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette
