Aberdeen Standard Investments has invested more than £44m in two build to rent schemes in Leeds and Edinburgh.
The first property is Lochrin Quay, a 113-unit residential block in Edinburgh, which Aberdeen acquired for £27.5m. The new-build property close to the city’s Exchange business district, offers a range of accommodation including studios and one-, two- and four-bedroom apartments, and is already 80% occupied. It is the second residential acquisition for a £2.3 bn multi-sector portfolio.
Separately, ASI’s UK PRS Opportunities 1 Fund has committed £17.25m to the development of a new 107-unit residential scheme in Leeds. The development by KMRE Group will provide rental accommodation in the western end of the city centre when it completes in spring 2019.
This investment will be the second asset for UK PRS Opportunities 1, which was launched in 2016 to focus on large investments in the private rented sector across the UK, including income-producing assets and development opportunities.
Together, the deals bring Aberdeen’s total residential AUM in the UK to more than £700m across 12 funds.
Ed Crockett, fund manager at Aberdeen Standard Investments, said: “These deals reinforce our long-standing commitment to the private rented sector in the UK, where we continue to target high quality housing stock in key cities. The UK market is currently worth more than £1tn and is set to grow with an anticipated 24% increase in private renting by 2022. With its secure long-term rental income streams, residential property is a compelling opportunity for investors.”
Aberdeen Standard Investments’ current UK residential portfolio includes over 800 private rented units and nearly 6,000 student rooms.
Capita and Colliers International acted for Aberdeen Standard Investments on the deals and the legal advisers were Pinsent Mason and Hogan Lovells.