Hearthstone Investment Management has acquired 100 build-to-rent homes for £31m in three forward-funding transactions on behalf of Hearthstone Residential Fund I.
The homes are a combination of houses and low-rise apartments acquired from housebuilders in suburban locations in Manchester, Nottinghamshire, the Midlands and Southern England.
Hearthstone IM is targeting rental homes for professionals, families and key workers in well-connected locations.
This round of acquisitions marks the largest investment to date from the £200m fund, which is now half deployed with a current portfolio of 600 homes.
Hearthstone will seek to invest the remaining finance over the next 12 months. It closed the 10-year £200m fund targeting returns of 4% in February this year, following backing from seven UK local authority pension funds.
This comprises investment from Merseyside Pension Fund, Tyne and Wear Pension Fund, Derbyshire Pension Fund, Nottinghamshire Pension Fund, Staffordshire Pension Fund, Teesside Pension Fund and West Midlands Pension Fund, alongside finance from Hearthstone’s management team.
Hearthstone IM is a 50:50 joint venture between the senior management team and Hearthstone Investors. It is led by Richard Otten as director of asset management, Andrew Smith as chief investment officer and Cristoforo di Torrepadula as director of investor relations.
Otten said: “The deals reinforce our ability to source and acquire quality housing assets in areas where tenants can benefit from easy access to their workplace, as well as being part of a strong and well-served local community.”
To send feedback, e-mail emma.rosser@egi.co.uk or tweet @EmmaARosser or @estatesgazette
