Property fund triples in value during active fifth year of trading

Budenberg, Altrincham, part of the portfolio

The net asset value of the Urban Splash Residential Fund has more than tripled in the past year.

Announcing its annual results for the period ending March, 2022, the Manchester fund said it has maintained its strong performance and continues to develop as an institutional-scale residential portfolio.

It invested more than £30m in new acquisitions during the reporting period, taking the portfolio to 252 homes in six UK cities: Manchester, Sheffield, Birmingham, Cambridge, Bristol and Bradford.

The portfolio was 96% occupied at year end. As a result of its resilient income stream and consistent rent growth, it has achieved a like-for-like capital uplift of 3.3% and an £892,000 increase in its revaluation reserve.

Other highlights for the fund, which began trading five years ago, include a profit of £2.2m, a 70% uplift on the £1.3m recorded in 2021. The results also show net asset value growth to £90.3m – more than three times the £25.2m value in its last annual report.

Fund manager, Akeel Malik, said: “Our appetite for future acquisitions remains and we continue to have additional equity and debt fundraising discussions to assist in our ambition to build an institutional-scale portfolio of design-led rental homes across the UK.”

Strengthening its future position, the Urban Splash Residential Fund has already identified an acquisition pipeline of more than £1bn through its relationship with regeneration company Urban Splash, as well as other third parties.

A sustainability-led strategy will see the fund continue to invest in homes with green credentials, as well as offering initiatives such as 100% green energy as standard and the security of five-year inflation-linked leases by default.

Akeel added: “We will maintain our approach, investing in sustainable and differentiated homes that offer our residents access to great design, in integrated communities, with space indoors and outdoors. I am excited about our next stage of growth, and grateful for the continued support of our investors and advisers.”

Since year end the fund has completed on a further 19 houses at Northstowe in Cambridgeshire, with final decorative and external works for the scheme under way.

The fund was established in June 2017 to acquire design-led homes in urban regeneration areas across the UK – both through the Urban Splash pipeline and through opportunistic acquisitions from third parties.

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