Addleshaw Goddard has advised on the creation of the UK's largest single 'build to rent' development portfolio in the Private Rental Sector (PRS) to date.
Acting for Dandara Group, the deal will see the development of over 2,000 high quality rented apartments. The transaction is the latest sign that PRS can bring in substantial additional housing and become recognised as an institutional asset class.
The portfolio, which sees support from the Homes & Communities Agency (HCA) and HSBC Bank PLC, will deliver 995 apartments in Manchester, 744 in Leeds and 323 in Birmingham to create a PRS portfolio with an estimated GDV in excess of £400m.
The developments will help meet demand for rented homes and directly supports the Government's £3bn Home Building Fund, which is intended to help to build more than 25,000 new homes and up to 200,000 in the longer term.
The Addleshaw Goddard team was led by Head of Funds and Indirect Real Estate and joint Head of the Real Estate Sector, Lee Sheldon, alongside Peter Sayer (Commercial Tax), Peter Hardy (Real Estate), Paul Salsbury (Finance) and a team of dedicated associates from across the firm's practice areas.
Lee Sheldon, stated: "We were delighted to advise Dandara on the establishment of this PRS platform which will help meet continuing demand for rented homes. It’s no surprise that these developments will be created in Leeds, Birmingham & Manchester – cities which have growing rental populations and are already welcoming PRS developments.
"With the Housing Minister's announced support for these schemes, it emphasises the potential PRS has to vastly improve standards in housing and crucially, how the sector could deliver much needed additional housing supply.
"The shift towards a professionally run rental market – with developments owned by single companies rather than multiple speculators and buy-to-let investors – promises to offer Britain’s nine million renters higher standards, better value and greater transparency with homes purposefully designed for renters."
Dandara Living will manage the letting and ongoing management of each development using in-house teams based within purpose-built facilities at each site.
Notes to editor:
Addleshaw Goddard is a leader in the PRS sector and has worked on numerous schemes including, advising:
- MODA Living on its PRS scheme in the heart of the Co-op & Hermes 20 acre NOMA masterplan in central Manchester
- Barclays Bank plc on its funding of a joint venture between Gatehouse Bank and Sigma Capital to create one of the first and largest PRS platforms in the UK
- HUB on the 152 home PRS scheme in North Acton, forward funded by M&G Real Estate and on Fizzy Living's offer to forward fund HUB’s Material Store development - one of London’s biggest PRS housing schemes.