Alecta has invested £250m (€276m) in Delancey Oxford Residential (DOOR), a UK build-to-rent (BTR) platform backed by Dutch pension fund asset manager APG and Qatari Diar.
DOOR is a residential investment vehicle, co-sponsored by Oxford Properties Group and Delancey Real Estate Asset Management advised client fund DV4.
Oxford and Delancey said the commitment from the €95bn Swedish pension fund is the first funding the platform has sourced from an external investor.
DOOR, which was seeded with £600m of capital from Oxford and DV4, acquired a 39% stake in Get Living in August 2018. The Alecta investment brings DOOR’s current capital commitments to up to £850m.
The capital will be used to invest in Get Living’s existing development pipeline and for further large-scale acquisition opportunities.
Get Living currently targets up to 12,000-14,000 homes across the UK.
Paul Brundage, head of Europe and Asia Pacific at Oxford Properties said: “In this new partnership with Alecta, we have attracted a like-minded strategic partner that shares both Oxford and Delancey’s conviction in the sector, our aspirations to support the ambitious growth of the Get Living business and our goal to create an unrivalled customer proposition.
“This fundraise will facilitate the expansion of the Get Living platform towards our target scale of 12,000 to 14,000 units and underpins our confidence in our global diversification strategy to invest into demographically-supported asset classes such as multifamily.”
Brundage said the company will continue its ongoing discussions with other capital partners “who share our conviction in the potential of the Get Living platform and the build-to-rent sector in the UK”.
Frans Heijbel, head of international real assets at Alecta, said this investment into DOOR enables Alecta to access the UK residential market, which benefits from attractive supply-demand dynamics and opportunities for future growth, through Get Living which is a best-in-class platform.
“Based on our experience in other European and US residential markets, we are confident that DOOR offers the scale and the quality of service necessary to deliver strong returns for our pension holders.
“Their highly talented team has a proven track record of successfully sourcing deals and delivering projects, which is why we feel this investment is a good fit for us.”