UK: Asset manager Waypoint has launched an SFR fund which will be seeded with an initial £150 million.
The Waypoint Affordable Single-Family Housing Fund is focused on new-build, affordable SFR and targets potential annual returns to investors of more than 15 per cent.
Delivered in partnership with Wise Living, the seed portfolio will provide 531 homes across seven sites, with a gross development cost of around £150 million, all of which are ready to start on-site.
A wider identified pipeline of 1,979 homes across 25 sites has been identified, with a gross development cost of £570 million. Up to 90 per cent of the portfolio is will be houses, with the remaining 10 per cent made up of apartments.
Paul Dennis-Jones, fund manager at Waypoint, said: “There is a pressing need for all forms of quality housing in the UK, and this fund has been created to help the thousands of hard-working individuals and families who are looking for a place to call home. Demand for this is high and has been further exacerbated by the current turmoil in the single-family rental sector as more and more private landlords exit, making the untapped opportunity even stronger. This provides a very healthy, secure, and long-term sector for institutional investors to now get involved at a cyclical point where yields are at a historical high. By prioritising properties in locations with easy access to essential local amenities and employment zones, we aim to provide not just bricks and mortar, but homes that support the wellbeing and economic stability of our tenants. This approach is not only socially responsible but also aligns with our goal of delivering sustainable, long-term returns to our investors.”
Paul Staley, managing director of Wise Living, added: “The ‘Waypoint Affordable Single-Family Housing Fund’ presents a compelling investment opportunity, comprising significant scale, strong developer partnerships, and well-established predictable returns. This approach is built on a solid foundation which not only gives investors significant and predictable returns, but also helps to address the critical need for high-quality and professionally managed affordable housing in the UK. We have years of experience in helping investors to make the most of the opportunities that are available in the market and look forward to helping to deliver more projects through this new fund.”
The fund has a focus on ESG criteria. Strategically, the fund will develop new SFH schemes that are affordable and cater to the needs of key workers and those on average incomes. Wise Living has been operating for more than ten years and has delivered more than 7,500 new homes with a GDC of £1.9 billion for BTR investors.
