Gatehouse Bank PLC have announced the sale of its Thistle Build to Rent property portfolio to Goldman Sachs Merchant Banking Division and Pitmore – for a total consideration of circa £150m. The deal is the largest transaction of its nature in the UK to date. This type of real estate investment has proved one of the most robust under current economic pressures.
“Thistle has not only been a highly performing investment throughout, it has also proved resilient during the Covid-19 pandemic, which is a key consideration in this market. As such, a strategic decision was made to exit Thistle and crystalise returns for the investors. The marketing process generated a high level of world-class institutional investor interest and we are pleased to announce a deal has been finalised with Goldman Sachs.”Charles Haresnape, CEO, Gatehouse Bank
The Thistle portfolio is at 99.8% occupancy with rental collection rates around 98%. The portfolio includes 918 two- and three-bedroom homes on 15 sites across North-West England – predominantly in the Greater Manchester and Liverpool areas. The developments are strategically located in areas of high demand from families seeking to rent quality properties with access to schooling, transport networks and amenities.
“The attractive rental price point and resilient nature of this portfolio is demonstrated by an average occupancy in excess of 99 per cent and rent collection in excess of 98 per cent, even during the Covid-19 pandemic. We certainly anticipate that the weight of domestic and international capital entering the single family BTR sector will continue to increase, especially as investors seek to further diversify in an attempt to drive returns.”Simon Hampton, Real Estate Corporate Finance Partner, PwC
PwC and CBRE advised Gatehouse Bank on the deal with Dentons providing legal representation. Savills advised Goldman Sachs and Pitmore with Herbert Smith Freehills and Jones Day providing legal representation.
“The unique nature of this portfolio meant that it was a highly competitive process, further demonstrating the significant weight of capital looking to enter the single-family Build to Rent sector. We are very proud to have drawn upon our national teams and networks to support Gatehouse on this landmark transaction.”Peter Burns, Residential Capital Markets Leader, CBRE
Thistle – a Single-Family Home Private Rental Sector Fund launched in 2014. It is a joint venture between Gatehouse Bank and Sigma Capital Group plc – with a total investment around £110m.
“The UK private rented sector has experienced consistent growth over the past five years underpinned by strong supply/demand dynamics. We are now looking to further develop our expertise in this sector with the creation of another fund in 2021.”Paul Stockwell, Chief Commercial Officer, Gatehouse Bank
Barclays will be providing loan finance to Goldman Sachs to support the purchase. PwC and CBRE are now working with Gatehouse Bank to source a new capital partner – maintaining the same investment composition and seeking to grow its single-family PRS portfolio to more than 3,000 units over the next five years through forward-funding direct from developers.
“We are pleased to have been able to support Goldman Sachs in the purchase of this strongly-performing portfolio. Having funded these assets since development, the decision to extend our involvement was an obvious fit with our ongoing commitment to the real estate sector in the UK. We look forward to working with Goldman Sachs going forward, whilst also continuing our successful relationship with Gatehouse Bank.”Graham Chilver, Relationship Director at Barclays Corporate Real Estate