Asian capital backs launch of Savills IM UK BTR fund

Savills Investment Management, an international real estate investment manager, launches UK Build to Rent strategy backed by Asian capital.

Asian capital backs launch of Savills IM UK BTR fund, which seeks to develop and forward fund Build to Rent assets | BTR News

International real estate investment manager – Savills Investment Management (Savills IM) – has launched its UK Build to Rent strategy. The new vehicle will seek to develop and forward fund both single and multifamily residential assets with a focus on regeneration areas and master-planned schemes that display strong characteristics, such as favourable renter demographics, evident supply/demand imbalance, and access to growing employment hubs. The platform aims to deliver high-quality, future-proof, and professionally managed housing stock in the UK market. The fund – which seeks to raise £200m – will leverage the research and broking capabilities of the residential team at Savills IM’s parent company Savills plc.

The Land Managers (TLM), the real estate investment division of the JL Family Office (JLFO), is the fund’s cornerstone investor. JLFO manages the private investments of Asia Pacific real estate veteran John Lim. This is TLM’s second partnership with Savills IM; in October 2021, TLM also invested in Savills IM’s retail park strategy to capitalise on the income-producing characteristics of the UK retail park sector.

“TLM’s strategy is to increase our exposure to defensive assets that benefit from long-term structural supply and demand dynamics, and the Build to Rent residential sector in the UK is one such sector that we are very optimistic about.

“We are glad to have found a trusted partner in Savills IM, with a proven depth and breadth of expertise in the UK real estate sector, to diversify our portfolio outside of Asia Pacific, and are confident that it will be able to deliver strong performance amidst rental growth rise, and burgeoning demand for quality rental properties in the UK.”

Andy Lim, Group CEO of JLFO and Founder at TLM

The fund launch follows news of Savills IM’s acquisition of Pitmore, a UK residential sector specialist and residential advisor. Pitmore has been involved in the private rented sector since 2012, and continues to manage some of the largest housing development sites in the country. The fund team comprises the core former Pitmore senior partners; Vittorio Davico, Tommy Adeane and Peter Wyatt.

“We are very excited to join the Savills IM family and to be able to launch the new Value Add Fund so quickly. We are working on an attractive seed asset and a deliverable pipeline. Hence, we are optimistic that we can deploy effectively and generate value for investors.”

Vittorio Davico, Former Senior Partner, Pitmore