Specialist property developer and operator Strawberry Star Group has announced the launch of a dedicated Built-to-Rent (BTR) arm, Star Living, targeting £1 bn (€1.2 bn) worth of assets over the next five years.
Star Living will launch at its Harlow development in Essex, with phase one as a dedicated BTR block of 163 residential units with a GDV of £45 mln, due to start construction this year.
Planning permission has also been granted for a Star Living site in Gravesend, Kent, with a first phase planned of around 100 BTR units with a GDV of £30 mln. An existing BTS site of Strawberry Star, Lu2on in Bedfordshire, will soon launch phase two with 564 units under BTR with an estimated GDV of £160 mln. Strawberry Star Group aim to have a portfolio within London commuter towns with a target of £1 bn GDV by 2027.
Chairman of Strawberry Star, Santhosh Gowda, said, ‘Our vision for Strawberry Star’s Star Living arm is to be the leading income generating, diversified and scalable BTR investment platform through our unique, cost-efficient, build and operational expertise. We aim to be one of the largest BTR providers in the commuter belt by 2027. Star Living brings together our existing skillsets as an end-to-end provider combined with a panel of leading contractors and consultants for significant placemaking schemes that benefit each local community.’
Santhosh continued, ‘With a strong pipeline of new Star Living sites due to launch in the next 12 months, we are one of the few developers responding in volume to the current supply crisis. We are focusing on commuter growth towns with a high proportion of young professionals and a low supply of rental properties, aiming to help redress the balance which is causing an upwards pressure on rental values. More choice and better supply will be a huge advantage to those now spending increasing time at home with flexible working here to stay, as BTR products are in a much better position to meet future needs and live-work trends.’
The business has already tested out market appetite at their flagship Lu2on scheme in Bedfordshire, having recently completed on its first phase of 401 units, with one of the three finished blocks dedicated to BTL rental homes only. 65% of the 135 rental units have already rented within the last 3 months of completion.
