Oxford Properties Group and Delancey Real Estate Asset Management have raised up to £250m from Swedish pension fund Alecta for the residential investment vehicle DOOR.
DOOR is co-sponsored by Oxford and Delancey client DV4, which alongside APG and Qatari Diar owns Get Living, the UK build-to-rent operator.
This is the first time DOOR has sourced funding from external investors. The capital will be used to invest in Get Living’s existing development pipeline and for further large-scale acquisition opportunities as the platform pursues its ambition to become the pre-eminent UK-wide build-to-rent provider.
DOOR, which was seeded with £600m of capital from Oxford and DV4, acquired a 39% stake in Get Living in August 2018.
The Alecta investment is the first commitment from this external fundraise and brings DOOR’s current capital commitments to up to £850m. The capital will be used to fund the continued growth of Get Living’s portfolio, which currently targets up to 12,000-14,000 homes.
Get Living currently comprises approximately 3,000 operational homes, mainly across two London schemes at East Village, the former Athletes’ Village at Queen Elizabeth Olympic Park in Stratford, and Elephant Central in Elephant and Castle, with a smaller neighbourhood at Middlewood Locks, Manchester.
The portfolio also features around 1,000 homes currently under construction and a secured development pipeline of 4,000 homes, located at East Village, Elephant & Castle and Middlewood Locks, as well as two sites in the key regional cities of Glasgow and Leeds. Delancey and Qatari Diar are providing development manager services on the various schemes.
Paul Brundage, head of Europe and Asia Pacific at Oxford Properties said: “In this new partnership with Alecta, we have attracted a like-minded strategic partner that shares both Oxford and Delancey’s conviction in the sector, our aspirations to support the ambitious growth of the Get Living business and our goal to create an unrivalled customer proposition. This fundraise will facilitate the expansion of the Get Living platform towards our target scale of 12,000 to 14,000 units and underpins our confidence in our global diversification strategy to invest into demographically-supported asset classes such as multifamily.”