Lloyds Bank’s build-to-rent arm swoops for 820 homes
Lloyds Living has acquired more than 800 homes across the North West and Midlands, in a deal that boosts its portfolio to 5,000 homes.
The division of Lloyds Bank, which has changed its name from Citra Living, has purchased 821 single-family homes across nine schemes in Greater Manchester, Merseyside and the West Midlands.
Homes have been acquired from a joint venture between Sigma Capital Group and Gatehouse Living Group called The UK Private Rented Fund (UK PRS Fund). The portfolio was launched in 2015 by Sigma, and supported by a ‘leading sovereign wealth fund’ and Gatehouse Bank.
Completed in phases from 2018, the acquired homes comprise a mix of two, three and four bedrooms, as well as 72 low-rise apartments. Occupancy of the homes currently stands at 99%, with residents benefitting from access to local amenities and EPC ratings of B or higher.
The deal follows the 2021 sale of the 918-home Thistle Portfolio, the first large-scale BTR single-family housing portfolio of its kind, delivered by Sigma and Gatehouse Living Group.
Graham Barnet, CEO of Sigma Capital comments: “As the founder and leading provider of BTR family housing in the UK, we’re delighted to have assisted in creating and managing the UK PRS BTR schemes, which has resulted in an attractive, strong-performing portfolio.
“We’re really proud to have supported both parties on the sale and to be able to showcase the demand, resilience and opportunity that single-family build to rent housing can offer both investors and renters alike.”
Paul Stockwell, Group Managing Director of Gatehouse Living Group, said: “This portfolio, delivered in partnership with a leading sovereign wealth fund, is the second SFR platform Gatehouse Living Group has created, stabilised and exited, establishing another benchmark transaction for the sector.
“The performance of this portfolio is testament to our vertically-integrated approach – incorporating investment, asset and property management expertise – which has to date delivered over 4,000 homes across a number of portfolios. The continuation of the management mandate with Ascend, the UK’s largest third-party operator of SFR, underlines the group’s market-leading capabilities.
“Over the past decade we have seen SFR become an increasingly important pillar of the UK’s housing mix, enabling the development of greater numbers of homes nationwide. We look forward to working with our capital partners on further opportunities to deliver and stabilise much-needed rental homes that truly provide residents with the quality and security of tenure they need.”
The advisory team on the deal:
Legal: Eversheds Sutherland
Acquisition: Savills Operational Capital Markets
Valuation: CBRE
Technical: CBRE/Savills
Tax & Finance: PwC
Operational: Wildheart Residential Management
