Global investment firm – KKR – and investment manager focused on UK residential real estate – Apache Capital – have established a joint venture to create a UK Build to Rent multifamily housing investment platform.
KKR and Apache Capital’s strategic partnership will invest £610m to fund the delivery of Moda Living’s next phase of its Build to Rent housing pipeline – with projects in core UK cities which will be developed and operated by Moda. Sites have already been identified in Birmingham, Brighton and Hove and London.
“Our strategic partnership with KKR demonstrates the growing maturity of the UK Build to Rent sector, which continues to attract global institutional capital thanks to its favourable demand-supply dynamics and defensive, counter-cyclical characteristics.
“This collaboration is consistent with our strategy of creating a premium product marked by high levels of service and amenity provision and we look forward to seeing the projects completed.”John Dunkerley, CEO and Co-founder, Apache Capital
The Build to Rent developments will deliver over 4,000 apartments as part of a £1.7bn development pipeline. The homes will be built to the latest design specifications, with high levels of onsite amenities and service provision for residents.
“We are excited to work alongside Apache Capital, and Moda Living, both highly experienced strategic partners with excellent track records, over the long term, to deliver a best in class portfolio in the Build to Rent residential sector, which remains a thematic priority for KKR”.Rosa Brand, Director, KKR
KKR’s investment was made via KKR Real Estate Europe Partners Europe II, a US$2.2bn fund dedicated to value add and opportunistic real estate investments in Western Europe.
“With the backing of Apache Capital and KKR we will deliver the next generation of Build to Rent neighbourhoods that will set new standards for style and service while meeting the growing demand for high quality rental housing that is responsive to modern lifestyles”.Tony Brooks, Managing Director, Moda Living
The joint venture between Apache Capital and KKR follows the success of Apache Capital and Moda’s second operational multifamily Build to Rent scheme – The Lexington in Liverpool, where 60% of apartments are already leased two months after launch. Moda’s flagship scheme – Angel Gardens in Manchester – is fully stabilised, having set new sector benchmarks for rents achieved.