Goodstone Living establishes its first UK BTR fund

Goodstone Living successfully establishes its first UK Build to Rent residential fund with institutional capital partners.

Goodstone Living's Smith's Garden Build to Rent scheme in Birmingham | BTR News
Goodstone Living's Smith's Garden Build to Rent scheme in Birmingham.

Specialist real estate developer and investment manager Goodstone Living announces the establishment of its first fund targeting the Build to Rent sector following the final close of Goodstone Living Partners 1 Fund, which is subject to Article 8 under the EU’s Sustainable Finance Disclosure Regulation.

Securing equity investments from a number of UK and international investors including Northern Local Government Pension Scheme (Northern LGPS), the Fund provides Goodstone Living with £550m of investment capacity.

The Fund also aligns with Goodstone Living’s strategy of leveraging its sector specialist team to partner institutional capital with high quality living assets across a range of markets and risk profiles.

“The successful launch of our first managed fund and ability to attract high quality institutional capital partners speaks to the confidence global investors have in the underlying fundamentals of the buBuild to Rent sector, as well as Goodstone Living’s vision of creating a better way to rent. 

“We are excited to support our capital partners in creating next generation rental communities that integrate innovation, sustainability, wellbeing and customer service into every decision.” 

Iliya Blazic, Chief Executive Officer, Goodstone Living

With a ‘develop-to-hold’ investment strategy, the Fund focuses on delivering and operating the next generation of rental residential communities across London and major regional UK cities for long term ownership.

Its initial portfolio comprises almost 1,000 high quality Build to Rent homes already under construction – and includes Dockside in Edinburgh which broke ground in May this year, and Smith’s Garden in Birmingham which broke ground in September.

Homes will be offered at mid-market price points, with +50% of private units to be attainable by +50% of local residents. All buildings will also be designed with dual staircases to maximise resident safety and wellbeing.

“We are delighted to announce Greater Manchester Pension Fund’s commitment to Goodstone Living Partners 1 alongside our Northern LGPS partners, West Yorkshire and Merseyside pension funds. This partnership already has two developments underway in Birmingham and Edinburgh and we are excited to see the portfolio develop further.

“The UK has an acute under supply of housing and Greater Manchester Pension Fund is proud to contribute to help solve this whilst also hopefully obtaining attractive risk adjusted income returns.”

Kevin Etchells, Greater Manchester Pension Fund on behalf of the Northern LGPS

The Fund will be the primary vehicle for Goodstone Living’s pipeline of development and turnkey opportunities until its capital has been substantially allocated. It is also focused on both decarbonisation and social value initiatives – targeting a +30% reduction in embodied carbon emissions and +50% reduction in operational carbon emissions.

“Our investment in Goodstone Living on behalf of our managed funds is aligned to our strategy of establishing and incubating specialist real estate managers in sectors we believe are supported by significant structural tailwinds.

“We believe that a scalable market opportunity exists in the UK rental residential sector and that Goodstone Living is well positioned and has the capability to promote decarbonisation initiatives and create social value in the local communities in which it operates.

“We would like to congratulate the team on the closing of their first managed fund, which marks a major milestone in Goodstone Living’s short history. We look forward to continuing to work with the business and its capital partners to support their growth ambitions.”

James Bechely-Crundall, Senior Vice President, Macquarie Asset Management