Hearthstone Investments has completed the deployment of its £152m Hearthstone Residential Fund 2 after concluding two transactions.
Hearthstone has acquired 45 new houses in Exmouth from a regional developer and in Newcastle it has completed a residential transaction with a national housebuilder.
Andrew Smith, chief investment officer at Hearthstone Investments, said: “The lockdowns resulted in disruptions across the value chain: planning, development, viewings, repairs and maintenance, conveyancing and valuations were all impacted.
“Even once some of these activities started normalising, the supply chain for housebuilding was severely interrupted with delivery times for key building materials escalating, slowing down construction of new homes. To make matters worse, the war in Ukraine led to a spike in inflation which further slowed construction of new homes and led to the cost-of living crisis impacting affordability for renters.”
Helen Simons, investment director of Hearthstone Investments, added: “Over the past 5-10 years, Hearthstone Investments has built an excellent network with housebuilders and agents, and critically gained their trust having already successfully deployed HRF1. This laid the foundations for the successful investment of the committed capital even under such demanding conditions.”
