Patrizia has completed the €45m (£39.5m) forward purchase of a residential tower in Park Royal, NW10, in a return to UK build-to-rent some four years after its last acquisition.
Amid investor nervousness post-Brexit, Patrizia has focused growing its BTR portfolio in Ireland, instead seeking to dispose of consented sites in the UK funded by balance-sheet capital.
The Germany-headquartered fund manager has now acquired a 102-flat tower on behalf of one of its institutional clients.
The scheme is part of Fairview’s 807-home Regency Heights development. The 16-storey BTR tower is due to complete this spring.
Last month Patrizia also announced it was starting on site at its 375-flat BTR scheme in Edgbaston in Birmingham in partnership with Homes England, after obtaining consent two years ago.
Phil Irons, head of transactions for the UK and Ireland at Patrizia, said: “There is a big demand imbalance of affordable residential housing, which is expected to persist for the foreseeable future in the UK.”
He added: “Investors are likely to increase their allocations to residential assets, as an attractive substitute for currently low yielding fixed income. In addition, rent collection in the residential sector has remained robust throughout the Covid-19 pandemic and we are confident that this latest investment in London will deliver strong, reliable returns to our investors.”
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