Developer appoints global advisor as portfolio heads for £1bn mark

A CGI of The Address

Liverpool-based property developer Elliot Group and London real estate firm Valorem Investment Partners have appointed global real estate capital markets advisor HFF to arrange key strategic equity relationships.

The move marks a change in strategy for Elliot Group, which has delivered 3,000 residential units across 12 sites in Leeds, Liverpool and Manchester since 2013 using funds raised from retail investors.

The gross development value delivered to date amounts to more than £800m, making it “an opportune time” to approach institutional-calibre investors, said Elliot Group founder Elliot Lawless.

“We’ve demonstrated an outstanding track record of delivery for our investors, with attractive capital growth and consistent yield performance through our very hands-on lettings and asset management strategies,” he said.

“We’ve seen a positive shift in institutional investors’ attitudes towards Liverpool. I think Hermes setting record rentals at their Cargo Building in Baltic opened a few eyes.”

He added: “The scale of our pipeline, when set against our track record and the current market, means that the time is now right to work with institutional partners to drive our programme forward.

“We have 1,250 units confirmed on four of the best city centre sites in the North of England for them to consider.”

The London office of HFF will lead a global search for funding partners seeking to support the growth in the UK’s build-to-rent (BTR) market.

They have highlighted Elliot Group and Valorem Investment Partners’ impressive pipeline to joint venture equity partners and an investment prospectus has been published for the next development to break ground, called The Address, in Liverpool’s popular Ropewalks neighbourhood.

Commenting on the appointment, John Starkie, HFF’s UK managing director, said: “Elliot Group was amongst the first Northern developers to recognise how under-served the UK market was for high quality rental properties.

“This move towards institutional funding seeks to tap into global equity and other institutions’ desire to participate in the strong fundamentals of the UK BTR market, while partnering with best-in-class developers and operators.

“We’re delighted to be partnering Elliot Group and Valorem Investment Partners with strategic equity relationships.

“Their track record speaks for itself and we see huge potential in the pipeline.”

He said: “They have some exceptional sites across the North’s three main cities and a strong professional team behind them.”

Valorem Investment Partners is headed by Anthony Maxwell-Jones, who brings his expertise in the full development process, including site identification, securing of planning approvals, and project management.

He was instrumental in the formation of the high profile Inhabit Portfolio, which involved aggregating regional land sites and obtaining planning consent for around 3,500 units.

He said: “Given Elliot’s proven and extensive track record of delivering high-calibre residential product, Elliot Group is the ideal partner for this new venture.”

He added: “Building on my experience with the Inhabit Portfolio, I am confident that Valorem Investment Partners and Elliot Group, collectively, offer a highly differentiated track record with key experience in all stages of the development process – from project sourcing all the way through to stabilisation.”

The prospectus for The Address has now been published and is being presented to a select number of investors by HFF’s London team.

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