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A pair of UK pension funds are in talks to buy a £340M UK build-to-rent portfolio from a joint venture between the Abu Dhabi Investment Authority and Greystar.
Northern LGPS and Local Pensions Partnership Investments have teamed up for their second major rented residential acquisition, the Fizzy Living portfolio owned by the international JV, Green Street News reported.
The portfolio comprises eight assets and 974 existing homes in and around London. It was one of the first BTR portfolios built in the UK.
ADIA backed Thames Valley Housing in the creation of the portfolio, and Greystar bought out Thames Valley’s position in 2021. The pair appointed JLL to find a buyer earlier this year.
At the end of last year, Northern and LPPI teamed up to take private PRS REIT, a single-family housing specialist, in a £1.1B deal. The company owns 5,478 homes, and the pair have created a housing investment platform called the UK Housing Partnership, run by Waypoint Asset Management, Green Street reported.
When the Fizzy Living assets are added to that platform, Northern and LPPI will own 6,500 rental homes, making the partnership one of the biggest owners in the country, across two property types, urban BTR and single-family.
Both investors are part of the tranche of newish pooled local government pension funds, which combined the assets and functions of myriad smaller local authority pension schemes. The aim is to mirror the sophistication and investment power of Canadian or Australian superannuation schemes.
And these funds have been particularly interested in rented residential. Earlier this year, Border to Coast bought a £450M single-family-home portfolio from Blackstone’s Leaf Living.
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