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Global investment giant Hines is forward-funding a build-to-rent scheme in Newcastle, its first foray into the UK build-to-rent sector.
Hines agreed to provide the capital to build the 519-unit Pottery Lane BTR scheme in the north-east city, which is being developed by Olympian Homes. The deal was struck by the Hines European Property Partners fund, a core-plus, open-ended fund that has €934M (£798M) of equity commitments.
Hines has invested in the UK student sector, but not previously in BTR. HEPP has a 30% to 40% allocation to living sectors, according to the fund’s website.
“The creation of rental accommodation in areas of high demand and low supply is a high-conviction investment theme for us,” HEPP Senior Managing Director and Fund manager Jorge Duarte said in a statement. “We believe this ambitious scheme provides a blueprint for how private capital can be deployed to deliver both value for our investors and the high-quality housing supply the UK and Europe so clearly needs.”
The 325K SF Pottery Lane scheme is on the bank of the River Tyne near The Helix, a new £350M tech and life sciences quarter being delivered by Newcastle University and Legal & General. Hines said the growing number of young, affluent knowledge workers in Newcastle was one of its reasons for backing the project.
It will be delivered in two phases by Olympian. An 11-storey block comprising 292 private units is expected to be completed in the fourth quarter of 2026, and a six-storey, 227-home block is due for delivery in 2027.
Hines said it has adapted the scheme to deliver a building that meets HEPP's strict environmental, social and governance targets. Plans propose an all-electric scheme powered by geothermal heat pumps and on-site solar photovoltaic technology.
Alongside a mix of one- and two-bed rental apartments, the scheme will provide about 10K SF of amenity space, including a gym, coworking facilities, two roof terraces and a cinema room.
Hines UK Head Ross Blair is speaking at Bisnow’s UK Outlook event on Thursday 18 April. In June, Bisnow is hosting the UK’s largest rented residential event, the BTR Annual Conference.
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