The real estate equity investment arm of global alternative asset firm TPG has teamed up with Gatehouse Bank to launch a single-family UK build-to-rent joint venture.
TPG Real Estate Partners (TREP) and the Shariah-compliant UK retail bank’s new venture has the capacity to build an investment portfolio worth £500m (€587m) to enable the construction of up to 2,500 suburban homes across the North and Midlands.
The companies said the venture has already secured an initial seed portfolio of four sites, acquired in partnership with housebuilder Countryside Properties. The launch properties comprise 321 homes and are located in the Midlands, Greater Manchester and Merseyside.
The partnership intends to deliver additional projects in the Midlands and North in the near future.
James Piper, a partner at TREP, said: “TREP has a strong track record of developing and owning high-quality private rental assets in North America and we are excited to leverage this expertise to achieve similar success in the UK, where there is strong and growing demand for new-build rental homes.
“We aim to be a valued partner not only to homebuilders but also the communities and families that will call these properties home.”
Paul Stockwell, chief commercial officer and head of real estate at Gatehouse Bank, said: “We are delighted to have found an experienced, institutional partner in TREP as we enter the next era of our investment in the private rental sector. Through the partnership announced today, this joint venture has the necessary capital to build and develop the next generation of build-to-rent housing.
“We are committed to building a portfolio of high quality – yet economical – housing, which will be attractive to local residents and benefit from strong demand.”
The deal is Gatehouse’s third venture in the UK’s private rented sector.
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