Gatehouse Bank and TPG Real Estate launch £500m joint venture

Gatehouse Bank announces the launch of a joint venture with TPG Real Estate Partners to create suburban BTR single-family homes.

London skyline from the air - Gatehouse Bank | TPG Real Estate Partners | BTR News

Gatehouse Bank announces the launch of a £500m joint venture with TPG Real Estate Partners (TREP). The joint venture will enable the construction of up to 2,500 suburban, purpose-built family rental homes across the North and Midlands.

Having already established two significant Build to Rent property portfolios, this is the bank’s latest venture in this sector, with the joint venture set to become one of the UK’s largest providers of purpose built single-family rental homes.

“We are delighted to have found an experienced, institutional partner in TREP as we launch our third major private rental investment initiative. This joint venture will see significant capital being deployed to build and develop the next generation of Build to Rent housing, concentrating on high quality family homes in suburban locations.”

Paul Stockwell, Chief Commercial Officer, Gatehouse Bank

The venture has already secured an initial seed portfolio of four sites, acquired in partnership housebuilder Countryside Properties, which specialises in mixed tenure and regeneration projects with an emphasis on placemaking design. The launch properties comprise of 321 single family homes, located in established residential communities in the Midlands, Greater Manchester and Merseyside regions of the UK. The partnership arrangements intend to deliver additional projects in the Midlands and North in the near future.

With significant equity, the venture will seek to strengthen existing partnerships, as well as develop new relationships with other leading housebuilders across the UK to forward-fund developments of new, high-quality rental homes for families – which will expand the portfolio to its target of 2,500 houses. 

“We are pleased to be partnering in this joint venture with Gatehouse, a skilled operator in the UK’s Build to Rent market. TREP has a strong track record of developing and owning high-quality private rental assets in North America and we are excited to leverage this expertise to achieve similar success in the UK, where there is strong and growing demand for new-build rental homes. With this initiative, we aim to be a valued partner not only to homebuilders but also the communities and families that will call these properties home.”

James Piper, Partner at TREP, the real estate equity investment platform of global alternative asset firm TPG

This is the third such venture for Gatehouse, a Shariah-compliant UK retail bank and real estate investment firm specialising in Build to Rent and the private rented sector. The bank achieved a ground-breaking sale of its first portfolio, Thistle, in January to an institutional investor for a total consideration of around £150m. The deal is believed to be the largest transaction of its nature in the UK to date – and includes 918 houses across 15 sites, predominantly two-and-three-bedroom homes across North-West England.