DWS has made its first acquisition in the UK’s burgeoning BTR scene with a £55m investment at Peckham Place, SE15.
It has purchased a block of 108 flats at Idaline Court within the south-east London regeneration, on behalf of one of its German real estate funds.
DWS has a portfolio of BTR properties in Europe, focused in the Netherlands, Spain and Ireland, but to date has stuck to student accommodation in the UK.
Jessica Hardman, head of European portfolio management at DWS, said: “The London BTR looks well positioned for high occupancy and growth with positive demand drivers and constrained supply of good quality, affordable, managed rental accommodation around Peckham.”
Ronen Ribak, head of European real estate transactions at DWS, added: “Peckham’s easy access to main central London hubs and ongoing gentrification offers an affordable alternative to other locations. This acquisition continues our focus on the BTR sector across Europe in strong micro locations with good connectivity.”
Following an initial slowdown in BTR investment during the coronavirus pandemic, the sector saw a 30% rise in investment last year.
While some deals have been shelved in the regions, the established London market has continued to attract funds with the few BTR opportunities. In the past six months Long Harbour, Moda Living and Patrizia have all inked deals in the capital.
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