Investment
into build-to-rent has surged from the lowest quarterly volume on record to the
highest, with £1.43bn transacted in Q3.
The figures from CBRE’s investment marketview follow just £83m reported for the previous quarter, as
wary investors held off during lockdown.
Investment totals for
the quarter gained a significant boost from AXA’s acquisition of the 1,233-home
Dolphin Square (pictured), understood to have sold below its £850m asking price.
This saw standing
stock acquisitions at under £800m, with over £600m of forward funding deals,
and the balance made up from forward commit deals.
Long Harbour agreed a
£156m forward funding deal for the next phase of
Berkeley Square’s Berol Yard in Tottenham Hale, and Pension Insurance
Corporation completed its first BTR investment with a £130m forward funding deal at Manchester’s
New Victoria.
Some 80% of the funds
– just over £1.1m – were committed to London, with a further £299m going to the
regions. This also includes Aberdeen Standard’s third deal of the year with the £41m
acquisition of Clarendon Quarter, hot on the heels of its two London-based
deals the previous quarter.
At the end of
September there was £1.4bn of deals under offer. If this were to transact this
year, it would see £4bn of BTR investment in 2020 – up 50% from 2019 levels.
Adam Burr, head of
CBRE’s residential valuation team in Manchester, said: “Over the last few
months, we have seen a number of high-profile deals across the key regional
centres which further underpin the robust nature of the market. And with the
emergence of some new investors, some specifically targeting the regional
markets, there appears to be a very optimistic outlook in the regional
multifamily/single family space.”