UK: Global investment manager Hines is forward-funding the Pottery Lane BTR scheme in Newcastle, its first deal in the UK BTR market.
Hines will fund the construction of the 519-unit scheme, which is being developed by Olympian Homes, via the Hines European Property Partners fund (HEPP), a core-plus, open-ended fund that has £798 million of equity commitments.
The scheme, set on the bank of the River Tyne, will be delivered in two phases. An 11-storey block comprising 292 private units is expected to be completed in Q4 2026, with a six-storey 227-unit block following in 2027.
Hines said it has adapted the scheme to deliver a project that meets HEPP’s ESG targets. The all-electric scheme will be powered by geothermal heat pumps and on-site solar photovoltaic technology.
Alongside a mix of one- and two-bedroom rental apartments, the scheme will provide amenity space including a gym, coworking facilities, two roof terraces and a cinema room.
HEPP senior managing director and fund manager Jorge Duarte said: “The creation of rental accommodation in areas of high demand and low supply is a high-conviction investment theme for us. We believe this ambitious scheme provides a blueprint for how private capital can be deployed to deliver both value for our investors and the high-quality housing supply the UK and Europe so clearly needs.”
The move comes less than a month after Hines acquired its first US BTR scheme.
