Heim’s UK Residential Fund reaches £375m at first close

Heim’s UK Residential Fund has completed its first close supported by UK Local Government Pension Schemes with initial commitments at £375m. The build-to-core fund has a £800m target, aiming to develop 5,000 homes.  Heim’s UK Residential Fund invests in mid-market rental housing, seeking to address the undersupply of high-quality, affordable rental products. The global investor said with construction activity at historically low levels, the fund was well-positioned to increase the supply of new rental homes across the UK. The fund has support from the Northern LGPS Pool, a £60bn-plus Local Government Pension Scheme pool incorporating Greater Manchester Pension Fund, West Yorkshire Pension Fund and Merseyside Pension Fund. Chief investment officer at Heim Global Investor Andreas Oulie said: “The first close follows a sentiment shift in the real estate market during the second half of 2024, with strengthened institutional investor demand for residential due to reduced uncertainty and continuing strong fundamentals in our sector. “Our new partners in Northern LGPS share our commitment to deliver new affordable rental housing on urban brownfield sites across the UK, and we are already working on a further equity raise, where we plan to onboard further investors in a second close later this year.” Head of alternatives at West Yorkshire Pension Fund, Darran Ward, added: “The Northern LGPS Pool is providing significant and scalable investment into the UK housing market at a time of great need to increase the supply of new homes to meet the government’s ambitious housebuilding targets. “The fund’s first investment has been made in one of our home markets, Leeds. We look forward to working closely with Heim to deliver much-needed housing solutions that benefit cities and communities across the Northern LGPS regions of Greater Manchester, West Yorkshire and Merseyside.”