Invesco Real Estate, the $85bn global real estate investment business of Invesco, has forward funded the development of 99 private-rented sector (PRS) homes at Beaulieu in Chelmsford, Essex.
The project, developed by Hopkins Homes, an East Anglia housebuilder, is expected to complete in early 2027.
The acquisition is the second transaction made on behalf of a recently secured European PRS mandate from a German institutional investor. The first deal was a recently announced acquisition of 160 residential units in Madrid. Invesco Real Estate is aiming to close two more residential deals shortly, with underlying assets spread across four different European countries.
The 99 homes form part of the wider Beaulieu masterplan and will consist of 70% single-family housing and 30% low-rise apartment units. The 105,400sqft development will target an EPC A energy rating and make use of photovoltaic panels, LED lighting, air source heat pumps and electric-vehicle charging.
The wider Beaulieu masterplan is forecast to be home to 3,600 families upon completion. Residents will benefit from new schools, community assets, a veterinary facility, indoor sports and other leisure facilities, cafes and play areas. Beaulieu also has 176 acres of public open space.
The PRS mandate is for Invesco Real Estate to create a diversified pan-European residential portfolio excluding Germany in European cities with strong demographics, delivering sustainable distributions and a total return. The mandate both underscores the attraction of the European PRS market and Invesco Real Estate’s long-term, established success in the residential sector, the manager said.
Rob Johnston, managing director, head of investments, UK and Nordics at Invesco Real Estate, said: “The UK suffers from a chronic, long-term undersupply of housing, with an average shortfall of around 90,000 homes per annum since 2017. This undersupply coupled with a sustained increase in the number of households nationally puts a continued strain on existing housing stock.
“Beaulieu is a great example of a high-quality plan to address the shortfall and create a viable new community in a prime southeast UK location. We’re excited to be playing a key role in the development on behalf of a major German institutional investor.”
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