Global investor Oxford Properties and UK-basd Delancey Real Estate Asset Management have raised up to £250 mln (€275 mln) from Swedish pension fund Alecta for their Door residential fund.
Door is a dedicated residential investment vehicle, co-sponsored by Oxford and DV4, a Delancey advised client fund, which, alongside APG and Qatari Diar, owns the UK's Get Living venture.
The €95 bn Swedish pension fund is Door's first external investor. The capital will be used to invest in Get Living’s existing development pipeline and further large-scale acquisition opportunities.
Door, which was seeded with £600 mln (€660 mln) of capital from Oxford and DV4, acquired a 39% stake in Get Living in August 2018. The vehicle subsequently embarked on an external fundraise, with Alecta the first to come through. It brings Door's current capital commitments to £850 mln.
Paul Brundage, head of Europe and Asia Pacific at Oxford Properties said: 'In this new partnership with Alecta, we have attracted a like-minded strategic partner.
'This fundraise will facilitate the expansion of the Get Living platform towards our target scale of 12,000 to 14,000 units and underpins our confidence in our global diversification strategy to invest into demographically-supported asset classes such as multifamily.'
He added: 'We will continue our ongoing discussions with other capital partners who share our conviction in the potential of the Get Living platform and the build-to-rent sector in the UK.'
Get Living currently comprises approximately 3,000 operational homes, mainly across two London schemes at East Village, the former Athletes’ Village at Queen Elizabeth Olympic Park in Stratford, and Elephant Central in Elephant and Castle, with a smaller neighbourhood at Middlewood Locks, Manchester.
The portfolio also features approximately 1,000 units currently under construction and a secured development pipeline of 4,000 homes, located at East Village, Elephant & Castle and Middlewood Locks, as well as two sites in the key regional cities of Glasgow and Leeds.
Delancey and Qatari Diar are providing development manager services on the various schemes.
'This investment into Door enables us to access the UK residential market, which benefits from attractive supply demand dynamics and opportunities for future growth, through Get Living which is a best-in-class platform,' said Frans Heijbel, head of international real assets at Alecta.
