Edmond de Rothschild raises £155m equity for resi funds
Edmond de Rothschild Real Estate Investment Management has raised £155m of equity at the latest closes of its two UK residential investment funds.
The equity raises form part of the group’s strategy to grow its UK residential platform to more than £1bn over the next 24 months.
The Edmond de Rothschild Residential Investment Fund UK, which invests in the private rented sector, has raised £135m from European institutional investors after its second close.
Edmond de Rothschild Real Estate Investment Management has raised £155m of equity at the latest closes of its two UK residential investment funds.
The equity raises form part of the group’s strategy to grow its UK residential platform to more than £1bn over the next 24 months.
The Edmond de Rothschild Residential Investment Fund UK, which invests in the private rented sector, has raised £135m from European institutional investors after its second close.
Additionally, social impact company Funding Affordable Homes, which the investment manager oversees as its property and investment adviser, has raised a further £20m at its first close.
The UK residential investment fund, which launched in August 2018, has now raised £266m of equity. Total firepower including debt now stands at around £450m, exceeding an initial £400m target.
The fund focuses on lower-to-mid market, purpose-built PRS properties. Its first six assets are forward-funding agreements for two sites in Leicester, two sites in Birmingham, and locations in Warrington and Nottingham. These will deliver around 1,400 flats in total.
The largest of these is a near-£80m forward-funding agreement for 400 flats at Birmingham’s Kent Street Baths, as reported by EG last week.
Meanwhile FAH’s new equity will be put towards new affordable housing within the regulated housing sector. It has purchased and committed to acquire around £170m of housing projects in London, the east and south of England, and other parts of the country.
The company provides forward funding to enable new properties to be built and managed by established local registered housing providers, while also utilising its own subsidiary housing association, Funding Affordable Homes Housing Association, to provide access to grant funding.
Its investors include Big Society Capital and the Joseph Rowntree Foundation.
James Whidborne, head of residential fund management UK at Edmond de Rothschild REIM, said: “We believe the current environment provides an excellent opportunity to create a diversified portfolio of UK rental assets delivering the panacea of sustainable investor returns and genuine social impact.”
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