£750m venture to deliver 2,500 single-family rental homes
A joint venture between Greykite Real Estate and Gatehouse Investment Management will invest £750m into a portfolio of 2,500 newly-built, single-family rental homes.
The JV will seek to partner with a range of housebuilders, including Persimmon, to focus on ‘critically undersupplied strategic regional locations’. It has secured exclusivity on a number of additional sites and is looking to have purchased more than £200m worth by the end of 2024.
The venture has been kickstarted with the acquisition of an initial seed portfolio of 11 Persimmon Homes sites of single-family rental homes.
Gatehouse will manage the sites across the Midlands, Yorkshire and North East and Ascend, the UK’s largest manager of single-family rental housing, has been appointed as property manager.
Michael Abel, founder and CEO of Greykite said: “The UK SFR sector benefits from a number of compelling demand fundamentals, and continues to be characterised by a chronic undersupply of purpose-built stock. In particular, we have identified several UK cities with attractive rental growth prospects, as a result of their supportive demographics, forecast GDP growth and good affordability metrics.
“Consistent with Greykite’s strategy of investing in a series of scalable high-conviction investment themes, we look forward to partnering with Gatehouse Investment Management to build a differentiated real estate business in the UK residential space.”
Dan Valenzano, senior partner of Greykite said: “GREYKITE is excited to announce this JV with Gatehouse Investment Management together with the initial acquisition from Persimmon. With its strong operational and sustainability characteristics, the UK SFR sector presents one of the most attractive and sizeable near term investment opportunities. With housebuilders increasingly embracing partnerships with build-to-rent investors, we look forward to amassing a distinctive portfolio of highquality homes across the UK.”
Paul Stockwell, Group Managing Director of Gatehouse Investment Management, added: “This launch comes at an exciting time in the SFR sector as it becomes an increasingly vital pillar of the UK’s housing mix. GREYKITE’S approach will complement our platform’s capabilities as we seek to capitalise on the opportunities presented by the asset class.
“With the first homes already acquired from Persimmon – a housebuilder we have worked with previously that understands the requirements of SFR – the new portfolio is on track to scale swiftly, leveraging the team’s sector understanding and delivery partner relationships to secure the best sites nationwide.”
