Invesco Real Estate and PLATFORM_ have formed a joint venture partnership targeting build-to-rent (BTR) properties across the UK.
It will be seeded by five fully-operational Platform_ schemes worth £115.8m with Invesco buying a majority stake in portfolio.
Invesco has bought a majority stake in the JV’s new portfolio, which has been seeded with five fully operational PLATFORM_ schemes worth £115.8m.
The schemes comprise 580 BTR units in Bracknell, Crawley, Exeter, Stevenage and Bedford, as well as four small commercial units in Bedford. PLATFORM_ will continue to manage the assets, which are 75% let.
As part of a 10-year arrangement, the companies will work together on a deal-by-deal basis and have already lined up a number of other schemes to add to the portfolio.
“The mindset is to start with this portfolio,” said PLATFORM_ chief executive Jean-Marc Vandevivere. “We are finalising an additional deal that we’ve acquired and we’re in final discussions to see how this would be able to go into the joint venture.
“It was very important to us to find a like-minded partner that believes in the future of this sector over the very long term, with which we will be able to build up scale and operational efficiency. We’re very pleased we’ve found that partner in Invesco.”
The joint venture is non-exclusive, meaning both Invesco and PLATFORM_ will also continue to work on other BTR deals.
John German, senior director of residential investment at Invesco, said the company saw the deal as part of a “long-term relationship”.
“The bulk of [the joint venture] is Invesco funded… but we see it very much as a joint venture between the two of us combining our respective skillsets,” he said.
We see it very much as a joint venture between the two of us combining our respective skillsets - John German, Invesco
“Part of our strategy is not to take planning risk. But effectively, if we find opportunities that PLATFORM_ hasn’t heard about and they’d work well for the joint venture, then we’ll obviously talk to them. And similarly, if they have opportunities in the various transactions they’re looking at that they feel could suit the joint venture, I’m sure they’ll come knocking at the door.”
PLATFORM_ describes itself as offering “affordable luxury”, with an average one-bed home renting for £900 a month and a two-bed costing between £1,050 and £1,100.
The news comes after it emerged that Dominic Martin had left Westrock, PLATFORM_’s parent company, to join US residential developer Atlas Residential in its London office. Martin advised Westrock on its PRS pipeline. He was unavailable for comment.
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