Ares Management Corporation (“Ares”) and Moda Living (“Moda”) announces today the launch of a single family housing venture. A fund managed by the Ares Real Estate Group has entered into a joint venture partnership with Moda to launch a vertically integrated Built to Rent single family homes brand across the UK.
The new platform will target the delivery of over 5,000 Build to Rent homes by the end of 2025 – with a gross development value in excess of £1bn. Development of the homes will be through Caddick Construction and partnerships with reputable local developers. Sites for the first c. 1,000 homes have been secured and construction is due to start in Q1 2022.
“This is an incredibly exciting opportunity to partner with Ares. We look forward to bringing a wide range of expertise and skills from the Caddick Group to enable true vertical integration of this platform.”
“We believe that now is the right time to launch a unique product into this space with a point of difference and we foresee strong nationwide demand for the offer. The single family housing proposition focuses on great lifestyle with great service. We believe this offers people more than bricks and mortar and genuine pride of place for the long-term.”Johnny Caddick, Director of Caddick Developments and Chief Executive at Moda
The single family Built to Rent homes will include a mix of one, two, three and four bedrooms homes – located in selected suburban neighbourhoods across the UK that are experiencing significant shortages of price accessible, quality rental housing. Moda will manage the platform – bringing its expertise as an operator of ‘next generation multifamily neighbourhoods’ to the suburban ‘single family living’ space.
“We’re excited to partner with Moda to launch this initiative to deliver high quality, price accessible suburban homes across the UK. At Ares, we believe that there is a significant undersupply of price accessible rental options in the UK, and more broadly across Europe, so this partnership represents yet another example of how we are executing on our strategy to bring forward high-quality rental housing options in key markets. This platform by Moda will provide an attractive housing option to residents ranging from all walks of life, including families who are renting before buying their own home as well as those who choose to rent as a lifestyle or require flexibility due to their work.”William Westbrook, Managing Director in the Ares Real Estate Group
The new platform will provide residents with vibrant social communities and an exceptional living experience, by leveraging best-in-class resident service, brand partnerships, and forward-thinking initiatives around smart technology and renewable energy. It also aims to provide true security of tenure on long-term renewable leases without requiring upfront fees or deposits. The new neighbourhoods will be targeting a broad demographic at an accessible price point.
“Through Moda we have a great knowledge of the UK-wide rental market. We understand how important a sense of community has become, and that’s where our new proposition comes into its own.”
“There is high demand for well-designed, professionally managed single family homes in strategic locations that are also – crucially – price accessible. This is what we are delivering with this new venture. We apply our wider infrastructure and ethos from across our Moda platforms to ensure a market leading resident experience and digital engagement alongside data management, smart integrations and sustainable living.”Dan Brooks, Director of Operations, Moda
Moda is one of the UK’s pioneering property brands, with its portfolio of ‘Next Generation Neighbourhoods’ spanning the UK, from Edinburgh to Brighton. Headquartered in Yorkshire, Moda Living is a family company with a core focus on best-in-class service, health and wellbeing, technology and ESG. The new venture brings this award-winning proposition into single family homes.
Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager offering clients complementary primary and secondary investment solutions across the credit, private equity, real estate and infrastructure asset classes. As of 30 September 2021, Ares Management Corporation’s global platform had approximately $282bn of assets under management. The company has approximately 2,000 employees operating across North America, Europe, Asia Pacific and the Middle East.