One of Canada’s largest and most diversified institutional investment managers – Alberta Investment Management Corporation (AIMCo), on behalf of certain of its clients and fully integrated investor, developer and operator – Ridgeback Group – acquire a portfolio of Build to Rent assets from privately held alternative investment firm Angelo Gordon, for £283m.
The five properties acquired from Angelo Gordon are located in gateway cities throughout the UK. The Build to Rent schemes are in Cardiff, Birmingham, Sheffield and two assets in Greater London – in Hayes and the Isle of Dogs.
“We are very pleased to be scaling up our UK Build to Rent joint venture with the acquisition of these five assets, which complement our existing portfolio in the sector. We are committed to delivering high quality, amenitised accommodation in which our residents can live, work and play whilst limiting the impact on the environment. From an investment perspective, we particularly like the inflation protection attributes of the Build to Rent sector in the current economic climate.”Rupert Wingfield, Head of European Real Estate, AIMCo
The properties are at different stages of the construction process, ranging from Sherborne Wharf in Birmingham, which is built and let, through to Isle of Dogs in London which is still in the planning stage. When construction is completed, the portfolio will consist of 1,452 apartments.
This acquisition nearly doubles the size of AIMCo and Ridgeback’s UK Build to Rent portfolio, and places the joint venture among the largest UK Build to Rent landlords, providing the opportunity to realise significant growth anticipated from this segment of the real estate market.
“We are delighted to be continuing our long-term, strategic partnership with AIMCo. This investment further enhances our portfolio of best-in-class Build to Rent assets across the UK and is a strong endorsement of our fully integrated capabilities. We believe the UK Build to Rent sector continues to demonstrate the strength of its underlying fundamentals as demand for high quality homes in the UK continues to grow.”George Bossom, Partner, Ridgeback Group
In Q2 2020, AIMCo and Ridgeback began their portfolio aggregation strategy with the acquisition of five properties totalling over 1,650 apartments under construction in cities including Manchester, Birmingham, Leeds and Liverpool. With the addition of these most recently acquired properties, AIMCo’s UK Build to Rent portfolio now comprises ten city centre assets, with over 3,100 units.
“We are pleased to realise our initial vision for this Build to Rent portfolio, from working with Ridgeback since their inception through to completing this sale to a long-term owner in AIMCo. We believe the opportunity set in the residential sector in the UK remains highly compelling and, moving forward, expect the asset class will continue to be an area where we deploy substantial capital.”Mike Diana, Managing Director, Europe Real Estate, Angelo Gordon