BauMont Real Estate Capital has acquired a second UK residential asset with its operating partner Addington Capital.
BauMont and Addington Capital said they have bought a portfolio of 318 houses and apartments in East London from a private investor for £99m (€115.2m).
The properties, which are mainly leased to young professionals and families, will be held for income and capital growth and refurbished.
Addington’s sister company AddLiving will provide property management services to the portfolio, with Addington Capital as asset manager.
The latest deal expands the two firms’ initial partnership which involved the acquisition of a portfolio of 182 apartments of mainly converted Victorian and Edwardian houses mostly in the borough of Croydon, South London for around £37m in October 2019.
Harry Wentworth-Stanley at BauMont, said: “Given its characteristics, the portfolio will be resilient and offer well-located, good quality and affordable homes in an undersupplied segment of the market. We are delighted to be working with Addington again who are experienced in managing this type of portfolio and have an excellent track record.”
Matthew Allen, principal of Addington Capital said: “We are continuing to look for value-add opportunities in the Greater London residential markets, where we can achieve portfolio discounts and can invest to modernise and improve the living accommodation. We are primarily looking at typically older stock (Victorian or pre-war) in Zones 3-6 and in emerging and gentrifying locations.
“The Greater London market still offers strong fundamentals. The shortage of housing at affordable price points in London remained acute throughout the pandemic and is likely to become more severe as the capital recovers in 2022 and beyond. We are delighted to be working again with the BauMont team in pursuing this strategy.”
To read the latest edition of the latest IPE Real Assets magazine click here.
