Gatehouse Bank and TPG launch Start Living BTR platform

Gatehouse Bank and TPG Real Estate launch Start Living, a new Build to Rent brand focused on single-family housing.

Blackberry Vale development - Gatehouse Bank | TPG Real Estate Partners | BTR News
Blackberry Vale development.

TPG Real Estate Partners, the dedicated real estate equity investment platform of global alternative asset management firm TPG, and UK bank and real estate investment firm specialising in Build to Rent and the PRS – Gatehouse Bank – announce the launch of Start Living, a new Build to Rent platform focused on the single-family housing sector. Both companies also announce the delivery of the first homes under the new brand.

Following the launch of the joint venture between Gatehouse Bank and TPG Real Estate Partners in August 2021, the Start Living platform launch will initially target over 2,500 homes with a GDV of over £500m. Start Living has the capability to significantly exceed this target, provided it can source suitable locations that match its criteria.

“The launch of Start Living and delivery of its first homes is a hugely exciting moment for our joint venture with TPG Real Estate, which is an experienced institutional partner in this sector. Our ambitions for the platform demonstrate the scale of the opportunity – there is significant demand for high-quality, professionally managed rental homes, and in helping to meet this need Start Living will become a leading single-family Build to Rent platform, providing the amenities and flexibility demanded by modern family life.”

Paul Stockwell, Chief Commercial Officer, Gatehouse Bank

The single-family Build to Rent homes delivered through the Start Living platform will typically form part of new housing schemes developed by third-party housebuilders – and they will be indistinguishable from private sale homes. Start Living will offer two, three and four-bedroom homes in areas that provide a high level of family amenities – such as schools and leisure facilities.

The first homes are now available at Lakeside North in Scunthorpe, with three further sites acquired in the West Midlands and Nottinghamshire. Countryside and Vistry are developing the first four locations, with further sites proceeding to completion. Additional housebuilder partnerships are also being created and sought for the platform.

“We are delighted to be bringing our first Start Living units to market with Gatehouse, who continue to prove themselves as a leading operator in the UK’s Build to Rent market. With our strong track record developing and owning high-quality private rental assets in North America, we are focused on building scale and excellence within the Start Living platform and acting as a valued partner to both homebuilders and the families that will call these properties home.”

James Piper, Partner, TPG Real Estate

Start Living is the third single-family Build to Rent platform undertaken by Gatehouse Bank. The Thistle Fund, a 900-unit portfolio built in 2014 was the first single-family Build to Rent deal of scale to transact in the UK – which was sold to Goldman Sachs in 2021. A second PRS platform was established in 2015, with the Kuwait Investment Authority as cornerstone investor.

TPG Real Estate Partners has a long-standing history in the acquisition of residential assets globally with a track record spanning over 140,000 housing units, and a breadth of experience in various sub-asset classes – which includes multifamily, single family, homebuilders, senior housing and manufactured housing. The company has a strong track record in the US single-family housing market with two major partnerships – B2R Partners and Suburban Housing Partners, representing a combined portfolio of over 4,000 homes. Since inception, the company has invested or committed $7.3bn of equity in real estate investments.

“The vast majority of Build to Rent homes that have been developed to date are ideal for young professionals, but less suitable for families – and this is the opportunity. Gatehouse Bank’s pioneering work and track record in the UK single-family sector, allied to the understanding TPG Real Estate Partners brings from its successful US holdings, will establish Start Living as the go-to name for families seeking to rent.”

Paul Stockwell, Chief Commercial Officer, Gatehouse Bank