Wavensmere Homes is seeking offers in excess of £60m for a portfolio of 262 single-family houses located across a number of city centres in the Midlands.
The homes, which were designed by Glancy Nicholls Architects, have been purpose-built for institutional ownership in the rental market.
Some 50% of the portfolio – which is being launched to the market as a forward commitment opportunity – will be located at the housebuilder’s £75m Friar Gate Goods Yard redevelopment in Derby city centre (pictured), which received planning committee approval in April.
Mark Wilson, partner at Acre Capital Real Estate, which has been appointed to market the homes, said: “This portfolio of over 260 new city centre houses presents a unique opportunity within the UK residential market. Wavensmere Homes has accrued a remarkable reputation for urban regeneration and delivering major housing-led schemes within inner cities and towns. These well-amenitised locations have the added benefit of the range of on-site communal facilities Wavensmere delivers for residents, such as co-working offices, screening rooms, community gardens, and fitness and play spaces.
“This significant and highly desirable housing portfolio will be of interest to institutional funds, particularly those specialising in build-to-rent. We are inviting offers in excess of £60m, which reflects an attractive net initial yield of 5.00%. Wavensmere’s proven track record for above average capital growth in burgeoning regeneration hot spots makes this an exceptionally exciting investment proposition.”
James Dickens, managing director of Wavensmere Homes, added: “Constructing two- and three-storey houses in city locations is in direct contrast to the prevalence of mid to high-rise apartment blocks that have adorned urban skylines over the past 25 years. But not everybody wants to live in a flat. There is huge demand for eco-focused single-family housing that’s close to major centres of employment, retail, leisure, healthcare, and a wide range of education provision.
“Working with ACRE Living’s specialist team, we are excited about the global appeal this portfolio sale could generate. The eventual deal could enable us to accelerate our construction programmes, boost local supply chains, and acquire additional regeneration land ahead of our current business plan projections.”
