Patrizia has bought a €45m London residential tower development in a forward purchase deal.

Patrizia said it has bought the 16-storey, 102-unit build-to-rent residential tower development in west London on behalf of one of its institutional clients.

The 6,800sqm tower, scheduled for completion in spring 2021, is part of the Regency Heights development in Park Royal.

Phil Irons, head of transactions for the UK and Ireland at Patrizia, said: “There is a big demand imbalance of affordable residential housing which is expected to persist for the foreseeable future, in the UK. Plus, investors are likely to increase their allocations to residential assets, as an attractive substitute for currently low yielding fixed income.

“In addition, rent collection in the residential sector has remained robust throughout the COVID-19 pandemic and we are confident that this latest investment in London will deliver strong, reliable returns to our investors.”

The deal increased Patirzia’s residential assets under management to over €12.7bn.

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