UK: BTR operator Placefirst and housebuilder Strata have formed a JV to deliver over 500 SFR homes by 2028.
The partnership is an element of Placefirst’s growth strategy across the UK, as it seeks housebuilders that can deliver “at scale and speed without compromising on the operator’s commitment to long-term value and sustainability for its residents”. KPMG Corporate Finance advised Strata on the agreement, which marks Placefirst’s first private sector joint venture.
The partnership launches with a £31.5 million scheme which will form part of Stata’s larger Desire development in Radial Park, Leeds, which is scheduled to complete for May 2025.
Placefirst will manage the scheme, which will deliver 128 homes in a mix of two-bedroom townhouses and three- and four-bedroom semi-detached homes.
Homes will be built using Modern Methods of Construction (MMC), attaining an EPC B rating.
The delivery of the Desire development marks Placefirst’s second neighbourhood in Leeds after Cross Heath Grove in the south of the city. The JV has also already identified a further 221 homes for delivery across the UK.
Gemma Smith, CEO of Strata, said: “This partnership with Placefirst is a natural progression for Strata as we continue evolving to become an innovative multi tenure home builder. We believe everyone should have the opportunity to live in a home that is beautifully designed, build to high-quality and energy efficient, whether buying or renting. We have designed a collection of homes for the single-family rental market, retaining the signature Strata style inside and out. We have worked with Placefirst to carefully consider the internal specification and ensure the homes offer everything a resident will be hoping for.”
“We see it as our role to create communities that will in turn improve the lives of generations to come. By joining forces, we can expand this vision and not only deliver more high-quality homes in areas of need, but use our combined experience to ensure our developments retain a strong sense of community and meet the needs of residents today and in the future,” she added.
Anna Hwang, chief investment officer at Placefirst, said: “Our ambition to deliver more quality homes across the UK comes down to a simple belief: renters deserve better. For too long, poor-quality housing with unstable tenancies has been the norm in the UK’s rental market. We know the only way to solve this problem is deliver more expertly-built, professionally-operated rental homes – whether through building them ourselves or through collaborative partnerships.
“This partnership with Strata is one such example and represents an important step forward in our mission. Combining our expertise, we can deliver sustainable homes at scale faster than ever before. Through our shared commitment to creating places where residents don’t just live but thrive, we will deliver a homeowner-quality living experience for our renters. With over a decade of placemaking experience, we understand the importance for residents to feel settled and put down roots. By prioritising creating neighbourhoods with a mix of home sizes, such as the first tranche of this partnership, we will continue to create places where our residents can thrive long-term, supporting them at every stage of their life,” she added.
