Citra Living has acquired 821 homes from Gatehouse Living Group for an undisclosed price.
The homes were completed in 2018 across nine schemes in Greater Manchester, Merseyside and the West Midlands.
The portfolio comprises a mix of two-, three- and four-bedroom homes, as well as 72 low rise apartments. Occupancy of the homes currently stands at 99%.
This is the second single-family rental (SFR) portfolio to be exited by Gatehouse Living Group, and the second to be established by Gatehouse Living Group in partnership with Sigma Capital Group. Under the terms of the deal, property and leasing management will continue to be undertaken by Ascend.
Andy Hutchinson, chief executive officer of Citra Living, which is part of Lloyds Banking Group, said: “While our focus remains firmly on increasing the number of rental homes available, the secondary market for rental homes is developing and by taking an active role in it, we can ensure that these homes don’t just remain in the private rental sector where they are needed but give their residents a landlord they know and can trust to deliver the service they need.
“As we pass the 5,000-home milestone, it is important to appreciate how much our business has developed in just three years. We’ll continue to grow and evolve to ensure we keep our focus on helping more people live in the homes they want, where they want, and delivering a high-quality customer experience.”
Paul Stockwell, group managing director of Gatehouse Living Group, a wholly-owned subsidiary of Gatehouse Bank, added: “This portfolio, delivered in partnership with a leading sovereign wealth fund, is the second single-family rental platform exited by Gatehouse Living Group, establishing another benchmark transaction for the sector. Gatehouse Living Group’s vertically-integrated approach – incorporating investment, asset acquisition and property management expertise – has to date delivered over 4,000 homes across a number of platforms, and the continuation of the management mandate with Ascend, the UK’s largest third-party operator of SFR, underlines the group’s market-leading capabilities.
“Over the past decade we have seen SFR become an increasingly important pillar of the UK’s housing mix, enabling the development of greater numbers of homes nationwide. We look forward to working with our capital partners on further opportunities to deliver and stabilise much-needed rental homes that truly provide residents with the quality and security of tenure they need.”
Graham Barnet, CEO of Sigma Capital, said: “As the founder and leading provider of BTR family housing in the UK, we’re delighted to have assisted in creating and managing the UK PRS BTR schemes, which has resulted in an attractive, strong-performing portfolio. We’re really proud to have supported both parties on the sale and to be able to showcase the demand, resilience and opportunity that single-family build-to-rent housing can offer both investors and renters alike.”
