German property group Patrizia has completed the forward purchase of a 16 storey, 102-unit build-to-rent residential tower development in west London, UK, for €45 mln on behalf of one of its institutional clients.
The deal increases Patrizia’s assets under management to over €12.7 bn in the residential sector.
Once finished in spring 2021, the 6,800 m2 tower, which is part of the Regency Heights development in Park Royal, will include a mix of high quality one-, two- and three-bedroom apartments across 16 floors. Regency Heights is being developed on the edge of one of London’s biggest regeneration zones and benefits from transport links into the city centre via two lines of the London Underground network and its proximity to major roads into central London.
‘There is a big demand imbalance of affordable residential housing which is expected to persist for the foreseeable future, in the UK,’ said Phil Irons, head of transactions for the UK and Ireland at Patrizia. ‘Plus, investors are likely to increase their allocations to residential assets, as an attractive substitute for currently low yielding fixed income.
Irons added: '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.’
