Hearthstone gains regulatory approval to market Fund in the Netherlands

Unlike its closed-ended predecessors, the new Hearthstone Residential Fund has a semi open-ended ‘evergreen’ structure.

The Hearthstone Residential Fund has been granted regulatory approval in the Netherlands | Hearthstone Investments | BTR News
The Hearthstone Residential Fund has been granted regulatory approval in the Netherlands.

Asset manager and fund sponsor focused on affordable private rented housing in the UK – Hearthstone Investments – has received regulatory approval to market its Hearthstone Residential Fund (HRF) to institutional investors in the Netherlands. 

Via its Alternative Investment Fund Manager, Langham Hall, Hearthstone Investments notified the Dutch regulator under the National Private Placement Regime (NPPR). As part of the application, the HRF will be designated as an Article 8 fund under the Sustainable Financial Disclosure Regulations (SFDR). 

The HRF will follow the same investment strategy as the fully deployed Hearthstone Residential Fund 1 (final close in 2019 at £200m), and Hearthstone Residential Fund 2 (final close in 2021 at £152m). 

Hearthstone Investments specialises in building regionally diversified portfolios, a mix of clusters of single-family Build to Rent houses and low-rise apartment blocks outside prime (urban) areas.

“We are looking forward to discussing the investment opportunity in UK residential property with Dutch investors who have a long-established track record of investing in housing. The UK private rented sector with over five million households is one of the largest in Europe, but the proportion of institutional ownership is still relatively low. We believe exposure to UK residential property offers Dutch investors an opportunity to diversify their real estate holdings in a sector with strong long-term fundamentals.”

Cedric Bucher, Chief Executive Officer, Hearthstone Investments, Director, Hearthstone Investments (GP3) Limited

As with the two previous funds, it will provide institutional investors with an opportunity to combine investment returns with a positive environmental and social impact. 

Acquisitions by Hearthstone Investments have increased the provision of energy efficient, well-maintained rental homes affordable to residents on average salaries, targeting areas with an undersupply of good quality rented housing. 

The company manages assets on behalf of UK Local Government Pension Schemes, alongside other institutional investors and oversees an income generating portfolio of over 1,800 homes across the UK.