construction

Midlands to get build-to-rent investment from major asset manager

A partnership between leading financial asset manager ICG-Longbow and property management firm SDL Group will see £250m invested into building more than 2,000 build-to-rent properties in the Midlands, in line with the market’s general refocus away from homeownership.

ICG-Longbow, a London Stock Exchange-listed fund provider, traditionally invests in UK commercial real estate debt-related investments, while SDL Group is a national property services group offering surveying, property management, auctions and agency and financial services.

The joint venture, which will be named Wise Living, will inject a £250m investment into the construction of 2,000 new homes specifically to be rented out in the Midlands. And while the majority of build-to-rent developments comprise high-spec flats in central locations, predominantly targeted at young professionals, Wise Living will build larger properties aimed at families further out of city centres. The partnership is hoping to plug a major gap in the market, with reports that only 10% of build-to-rent homes being built are houses.

New type of build-to-rent

As getting onto the housing ladder across much of the country becomes less and less attainable, many people are renting for longer. As a result, people’s preferences are changing, particularly as renters age, with some even choosing renting over buying due to lifestyle factors rather than financial considerations. Many people now prefer the flexibility and living standards that can be achieved in these types of high-quality, purpose-built rental homes, and more companies, investors and developers are hoping to meet this demand where there is currently a shortage.

ICG-Longbow co-founder Martin Wheeler said: “The private rented sector is a compelling investment case because the undersupply of houses, which goes back decades, has now become more acute because it’s more difficult to buy.”

He also added that future investments could see the company plough as much as £1bn into this type of housing over the next three years, which would prove a major boost to the sector – and could encourage others to follow suit to cash in on the high levels of demand in the market.

Self-certified Sophisticated Investor

Please read

I declare that I am a self-certified sophisticated investor for the purposes of the restriction on promotion of non-mainstream pooled investments. I understand that this means:

I am a self-certified sophisticated investor because at least one of the following applies:

I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me seek advice from someone who specialises in advising on non-mainstream pooled investments.

High Net Worth Investor

Please read

I make this statement so that I can receive promotional communications which are exempt from the restriction on promotion of non-mainstream pooled investments. The exemption relates to certified high net worth investors and I declare that I qualify as such because at least one of the following applies to me:

STAY AHEAD OF THE MARKET

Sign up for first access to new developments and exclusive property investment opportunities.

We send limited and targeted emails on new launches and exclusive deals which best fit your areas. We are trusted by over 30,000 active buyers as their source for new stock.

  • New property developments
  • Professional market reports
  • Property deal alerts
  • Development updates
Manchester property investment

FIRST FOR NEWS AND KNOWLEDGE.

Receive trending news straight to your inbox and stay up to date on all of the property market trends and advice.

Established since 2005 we are a leading voice of authority and commentary on the UK property market. Our news is trusted by Apple News & Google News.

  • UK housing market
  • Mortgage & money
  • Buy-to-let landlords
  • Guides & advice

Talk to us

Speak to our UK property experts today:

 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

 

+852 6699 9008

Open from 9am-6pm HKT