Aviva Investors has completed the forward funding of 133 new homes in Wixams, Bedfordshire, as part of its partnership with Packaged Living.
The two- to four-bedroom dwellings are being built on the 750-acre Wixams development, which will accommodate approximately 4,500 homes when fully built out.
The latest investment made by Aviva Investors Real Estate Active Long Term Asset Fund (REALTAF) marks the eleventh funding deal by Aviva Investors since launching its partnership with Packaged Living in 2021 and it is the partnership’s second forward funding transaction with Barratt Redrow, which will be responsible for delivering the homes.
The partnership is targeting an EPC A rating for the new homes, a proportion of which will be eligible for Octopus Energy’s ‘Zero Bills’ tariff, which enables customers living in homes featuring enhanced battery storage and solar panels provision to benefit from zero energy bills for 10 years, backed by a 10-year guarantee from Octopus Energy.
Ben Sanderson, managing director, real estate, at Aviva Investors, said: “We are pleased with the growth of our single-family housing platform, having set out with the initial expectation of funding 1,000 new homes. The living sector is a core part of our real estate investment strategy. Having already invested approximately £800m into UK living, we have an ambition to grow that commitment significantly over the next three to four years.
“These investments show the role private capital can play in supporting the creation of new homes across the country, that can help the UK get ready for the future by combining high energy efficiency with modern technology, thereby lowering costs for families living in them, whilst also delivering long-term investment outcomes.”
Jonathon Ivory, chief investment officer at Packaged Living, added: “This is our second transaction with Barratt Redrow. Over 60% of our investments are now with strategic partners with whom we enjoy programmatic relationships. This ‘rinse & repeat’ approach to the single-family housing business model reduces the time and cost of each transaction, the savings of which are then reinvested in growing the portfolio and solving for the government’s housing agenda.
“It also doesn’t hurt that Universal Studios just announced it will be developing Europe’s largest theme park on our doorstep. This multi-billion-pound investment will create thousands of local jobs and provide our business plan with significant upside potential.”
