US group Ares Management Corporation and Moda Living have joined forces to build up a £1 bn (€1.2 bn) built-to-rent single family homes portfolio across the UK.
Through direct development with Caddick Construction and partnerships with local developers, the platform will target the delivery of over 5,000 high-quality purpose-built homes to the UK market with a gross development value over £1 bn by the end of 2025. The sites for the first 1,000 homes have been secured and construction is due to start in Q1 2022.
The homes will be comprised of 1-4 bedrooms and located in select suburban neighborhoods across the U.K. that are experiencing significant shortages of price-accessible, quality rental housing. Moda, a built-to-rent developer operator, will manage the platform.
'We’re excited to partner with Moda to launch this initiative to deliver high-quality, professionally managed, and price-accessible suburban homes across the U.K. The platform will target the deepest and most underserved part of the market, particularly those young families who are working towards home ownership or whose lifestyle or work require more flexibility,' said John Ruane, partner and co-head of Ares European Real Estate. 'This partnership represents yet another example of how we are executing on our European rental residential strategy. We have focused on creating platforms in undersupplied markets at affordable price points where demand is greatest.'
'This is an incredibly exciting opportunity to partner with Ares. We look forward to bringing a wide range of experience and skills from the Caddick Group to enable true vertical integration of this platform,' said Johnny Caddick, director of Caddick Developments and Chief Executive at Moda. 'We believe that now is the right time to launch a unique product into this space with a point of difference and we foresee strong nationwide demand for the offer. The single family housing proposition focuses on great lifestyle with great service. We believe this offers people more than bricks and mortar and genuine pride of place for the long-term.'
'Through Moda we have a great knowledge of the U.K.-wide rental market. We understand how important a sense of community has become, and that’s where our new proposition comes into its own,' said Dan Brooks, director of Operations at Moda. 'There is high demand for well-designed, professionally managed single family homes in strategic locations that are also – crucially – price accessible. This is what we are delivering with this new venture.'
