KKR and Inhabeo, KKR Real Estate’s living sector platform in Europe, have acquired The Slate Yard build-to-rent (BTR) scheme in Manchester from L&G for more than £100m.
The 270,000 sq ft waterfront scheme, which was completed in phases between 2017 and 2020, provides 424 residential units across three properties. The on-site amenity provision includes a gym, residents’ lounges and co-working spaces.
L&G put The Slate Yard scheme on the market in September last year with a guide price of £110m.
Mark Ekinde, principal in KKR’s European real estate team, said: “Through the acquisition of The Slate Yard, we are pleased to further our presence in Manchester and continue to grow our UK residential portfolio. Catering to one of the UK’s largest and fastest-growing cities, these properties are well placed to meet the growing demand for high-quality, yet affordable, residential real estate. Acquiring strategically located, high-quality residential assets in major urban centres continues to be one of our main investment themes in Europe, driven by positive market trends and compelling structural dynamics.”
Dan Batterton, head of residential at L&G, added: “We know there’s a critical shortage of housing supply, coupled with increasing demand for high-quality rental homes in the UK. With our recently announced partnerships aimed at creating thousands of new homes across the country, this sale will allow us to continue to reinvest in the build-to-rent sector, delivering much needed new homes.”
Ross Netherway, CEO of Inhabeo, said: “This acquisition marks an important milestone in the continued growth of our European living sector investments with KKR, which now exceed £500m. We look forward to building on this momentum to expand further into high quality build-to-rent and purpose-built student accommodation assets across select European geographies.”
KKR and Inhabeo were advised by CBRE and DLA Piper and L&G was advised by Knight Frank and Macfarlanes.
