Heitman has taken its first major step into the UK build-to-rent market after agreeing to purchase two sites.
The Chicago-based investment firm has agreed to forward-fund two residential developments in Manchester’s city centre and in Liverpool, in the Baltic Triangle.
Heitman, which manages more than 14,400 multi-family residential units in the US, said it made the acquisitions on behalf of an affiliate of the firm.
Partnerships
The sites are being developed in partnership with Liverpool-based developer Brickland and BTR operator LIV Group, with the latter set to operate the assets upon completion. LIV arranged the funding deal between Heitman and Brickland.
The development in Manchester will consist of two towers of 16 and 19 storeys providing a total of 363 one- and two-bedroom units along with duplex and townhouse apartments.
The property will be constructed around private courtyards and provide two rooftop gardens. Co-working space, a library, gym and resident lounge areas are also key features of the development, which sits close to the Cornbrook tramstop.
The nine-storey development in Liverpool will consist of 200 residential units comprised of one-, two-, and three-bedroom units. It also includes a landscaped upper floor terrace, gym, concierge services, and a residential lounge.
Brickland, founded by Liverpool-based chief executive Sam Rowlands, is expected to complete both developments in 2020.
Tony Smedley, Heitman’s managing director and head of European private equity, said: “The purchase is consistent with our strategy of investing in undersupplied sectors, growing urban environments, and developing amenity-rich schemes that also provide a sense of community.
‘Attractive combination’
“The living sectors exhibit an attractive combination of stability and growth with defensive qualities underpinned by their long-term secular and structural characteristics.”
Rowlands said: “This is a milestone for BTR in these Northern Powerhouse cities. We are bringing forward exemplar private rental schemes, without cutting corners, where rents will be affordable to the mass market”.
Founded in 1966, Heitman has around $40bn (£30.7bn) in assets under management. Its clients are from US, European, Middle Eastern and Asia-Pacific institutions, pension plans, foundations and corporations and individual investors.
Heitman’s European strategy has in recent years included the purchase of Grainger’s German residential portfolio business for €124m (£94m) in 2016.
It subsequently completed the first close of its fund, Heitman European Residential Investment Partners, as part of a wider effort to aggregate and manage a portfolio of for-rent residential properties in Western Europe.
To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette
