24 new build homes acquired in deal worth £18m
24 new build homes in Pontefract has been acquired by a private equity fund as part of a deal worth nearly £18m.
Hearthstone Investment Management Limited announced its private equity fund, Hearthstone Residential Fund 1 (HRF1), exchanged contracts for the purchase of 81 houses for a total of £17.9m from two housebuilders.
HRF1 has purchased 72 two, three and four-bedroom houses scheduled to be completed in 2019 for a phased delivery between January and December.
As well as Pontefract, the new build homes are located in Exeter (28), Bicester (11) and Rugby (nine).
The private equity fund has also agreed to purchase a further nine three-bedroom houses in Ashby-de-la-Zouch from another national housebuilder.
John Coles, asset manager of Hearthstone Investment Management, said: “This is the largest deal HRF1 has completed to date with a single housebuilder. The purchase of such a significant number of houses across several sites is consistent with the fund’s regional diversification strategy to the different regions across the UK.”
Richard Otten, partner and director of Asset Management, Hearthstone Investment Management, added: “With this latest round of acquisitions, we are now working with a total of six major housebuilders across the UK.
“It has been a core part of the strategy for HRF1 to work with a small group of housebuilders to establish relationships and source good quality houses in suburban regional areas that offer sustainable employment opportunities.”
HRF1 is advised by Womble Bond Dickinson (UK) LLP.
