Global investment firm KKR announces the acquisition of two Build to Rent developments in Wembley Park from Quintain for an undisclosed sum.
The scheme’s acquired are the Alameda and Beton, completed in 2019 and 2020 respectively. In total, the two developments – which hold BREEAM ‘Excellent’ and WiredScore ‘Platinum’ ratings – include 490 Build to Rent units and c.40,000 sq ft of retail and leisure space.
“We are pleased to acquire two high-quality assets in Wembley Park, one of London’s most exciting residential neighbourhoods. This investment underscores our conviction that residential real estate will continue to benefit from structural growth drivers.
“Located within an established submarket with excellent connectivity to Central London, the assets are well positioned to benefit from the favourable dynamics of the London residential market.”Charles Tutt, Head of UK Real Estate, KKR
The investment is being made through KKR’s its European Core+ Real Estate strategy, which invests in high-quality, substantially stabilised assets with medium-term value growth potential.
KKR have also appointed Quintain to manage both the residential and retail elements of both buildings, marking Quintain’s commitment to manage properties as a third-party manager for investors in Build to Rent through its Quintain Living management platform.
“This acquisition expands on our European real estate strategy, which includes investing in high-quality residential assets. The Core+ sector is proving to be a strong strategy given its ability to structurally grow in areas where there is an imbalance in supply and demand, particularly as investors seek attractive risk adjusted returns in a dynamic macro-environment. KKR is well positioned in a competitive market given our global track record, the strength of the KKR platform and our sophisticated investment approach.”Ian Williamson, Head of Core+ Real Estate in Europe, KKR
This transaction follows the recent sale of Quintain’s three Build to Rent assets – Alto, Dakota and Montana to Goldman Sachs and Tene Living. This deal with KKR is part of Quintain’s wider strategy to dispose of stabilised, early-generation residential assets at Wembley Park, repay debt and to invest in ongoing development, with a focus on Build to Rent, neighbourhood retail and placemaking.
The transaction also builds on KKR’s strong Real Estate platform in the UK and across Europe, where the team also invests across logistics, industrial and commercial real estate through KKR’s platforms.
“This deal underlines our commitment to recycling capital from non-core and stabilised assets to re-invest in new homes at Wembley Park, where we have two new buildings underway and on track to be delivered by 2025. We are also delighted that KKR has appointed Quintain Living to continue managing Alameda and Beton. This marks the first step in the roll-out of our Quintain Living management platform to third-party operators.”James Saunders, CEO, Quintain