Private investment firm Pictet Alternative Advisors (PAA) has launched its London residential strategy with the acquisition of two residential apartment blocks in London, in partnership with Pinnacle Investments.
Financial details were not disclosed.
Comprising 70 one- and two-bed units, the apartments were purchased in an off-market transaction from L&Q, one of London’s largest housing associations.
The development, which includes Ropemaker's Yard, forms part of a regeneration scheme of the old Ocean Estate in Limehouse, a sub-market situated between the City of London and Canary Wharf.
Charlie Baigler, head of acquisitions, real estate at Pictet Alternative Advisors, said: 'This purchase marks the launch of a key strategy for Pictet Alternative Advisors.
'The supply and demand fundamentals remain attractive and tenants are increasingly seeking high quality, well-located, and professionally managed rental apartments, with outdoor space and amenities. This asset fulfils those demands.
'Despite current headwinds impacting property markets, over the long term, this investment presents a sensible entry point for our residential strategy. Our partnership with Pinnacle ensures the highest standards in technology enabled property management, with a strong focus on ESG.'
PAA’s operating partner on this strategy, Pinnacle Investments, is a residential property specialist, providing asset management and property management functions. Chris Turnbull, CEO of Pinnacle Investments, added 'We are delighted to work with Pictet Alternative Advisors on this exciting strategy and look forward to managing a growing portfolio of London residential assets over the coming years'.
Going forward, Pictet Alternative Advisors said it planned to significantly increase its footprint in the London residential market, taking into account increasing demand for high quality rental product at a time of limited supply and lack of housing affordability. The firm also mentioned the sector's 'resilience in a downturn' citing 'residential (as) the best performing asset this year in terms of income sustainability'.
Pictet Alternative Advisors has been notably active in the Greater London area this year, acquiring four last-mile logistics assets to date in 2020.
