UK: Greykite Investment Adviser’s European property fund and Gatehouse Investment Management have acquired an initial seed portfolio of 11 sites for a new £750 million SFR investment venture.
The Greykite European Real Estate Fund I and Gatehouse UK SFR venture has invested an unspecified amount to buy the 11 sites, in the Midlands, Yorkshire and the north-east, from housebuilder Persimmon Homes.
The JV has also secured exclusivity on several sites and aims to secure more than £200 million in purchase commitments by the end of 2024, with an end goal of 2,500 SFR homes acquired through partnerships with housebuilders. Gatehouse will asset-manage the portfolio, with Ascend appointed to manageme the units.
Michael Abel, founder and CEO of Greykite, said: “The UK SFR sector benefits from a number of compelling demand fundamentals, and continues to be characterised by a chronic undersupply of purpose-built stock. In particular, we have identified several UK cities with attractive rental growth prospects, as a result of their supportive demographics, forecast GDP growth and good affordability metrics. Consistent with Greykite’s strategy of investing in a series of scalable high-conviction investment themes, we look forward to partnering with Gatehouse Investment Management to build a differentiated real estate business in the UK residential space.”
Paul Stockwell, group MD of Gatehouse Investment Management, added: “This launch comes at an exciting time in the SFR sector as it becomes an increasingly vital pillar of the UK’s housing mix. Greykite’s approach will complement our platform’s capabilities as we seek to capitalise on the opportunities presented by the asset class. With the first homes already acquired from Persimmon – a housebuilder we have worked with previously that understands the requirements of SFR – the new portfolio is on track to scale swiftly, leveraging the team’s sector understanding and delivery partner relationships to secure the best sites nationwide.”
