£500m fund launched to build 2,500 rental homes

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Gatehouse Bank has launched a £500m joint venture with TPG Real Estate Partners (TREP) to bring forward the construction of up to 2,500 rental homes across the North and Midlands.

This is the bank’s latest venture in this sector, with the joint venture set to become one of the UK’s largest providers of purpose built single-family rental homes.

Paul Stockwell, Gatehouse Bank’s chief commercial officer, said: “We are delighted to have found an experienced, institutional partner in TREP as we launch our third major private rental investment initiative. This joint venture will see significant capital being deployed to build and develop the next generation of build-to-rent housing, concentrating on high quality family homes in suburban locations.”

The venture has already secured an initial seed portfolio of four sites, acquired in partnership with housebuilder Countryside Properties. The launch properties comprise of 321 single family homes, located in established residential communities in the Midlands, Greater Manchester and Merseyside regions of the UK. The partnership arrangements intend to deliver additional projects in the Midlands and North in the near future.

James Piper, partner at TREP, the real estate equity investment platform of global alternative asset firm TPG, said: “We are pleased to be partnering in this joint venture with Gatehouse, a skilled operator in the UK’s build-to-rent market. TREP has a strong track record of developing and owning high-quality private rental assets in North America and we are excited to leverage this expertise to achieve similar success in the UK, where there is strong and growing demand for new-build rental homes. With this initiative, we aim to be a valued partner not only to homebuilders but also the communities and families that will call these properties home.”

This is the third such venture for Gatehouse, a Shariah-compliant UK retail bank and real estate investment firm specialising in build-to-rent (BTR) and the private rented sector (PRS). The bank achieved a ground-breaking sale of its first portfolio, Thistle, in January to an institutional investor for a total consideration of around £150m. The deal, believed to be the largest transaction of its nature in the UK to date, comprising a portfolio of 918 houses across 15 sites, predominantly two-and-three-bedroom homes across North-West England.

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