MTVH sells Fizzy Living stake to Greystar

Build to Rent pioneer Metropolitan Thames Valley Housing (MTVH) sells its minority Fizzy Living stake to Greystar.

Fizzy Walthamstow - Metropolitan Thames Valley Housing | Greystar | BTR News
Fizzy Walthamstow.

Build to Rent pioneer Metropolitan Thames Valley Housing (MTVH) has sold its minority stake in Fizzy Living (Fizzy) to Greystar Real Estate Partners, LLC – a global leader in the investment, development and management of high-quality rental housing properties. Savills Capital Advisors acted as an advisor to MTVH on the sale. A wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA) retains its stake in Fizzy Living.

Greystar will assume management of the Fizzy Living portfolio, which comprises nearly 1,000 homes, from MTVH. Greystar also confirms the acquisition of Fizzy Living from MTVH at an implied portfolio valuation in the region of £400m. As part of the transaction, the Fizzy Living brand and more than 30 employees will move across to Greystar, significantly increasing the company’s already sizeable footprint in London.

“Fizzy Living is one of London’s market leading multifamily platforms, with an exceptional brand and an irreplaceable property portfolio. It was a pleasure to work with MTVH on this transaction.”

Ralph Watson, Director, Savills Capital Advisors

The Fizzy Living assets in Canning Town, Lewisham, Epsom, Stepney Green, Poplar, Walthamstow, Hayes and Silvertown are well-located and close to public transport. Launched in 2012 by MTVH, Fizzy Living was the first professionally managed, branded Build to Rent service of its kind in the UK. It was designed to service the needs of young professionals by providing good quality and well-managed Build to Rent accommodation.

MTVH believes now is the right time to relinquish its remaining stake and focus on delivering new and sustainable affordable housing, for which the proceeds of the sale will be used. Over the next five years MTVH plans to build a further 5,000 new homes, while continuing to make significant investments in improvements to existing homes and in response to building safety requirements. The vast majority of these new homes will be for affordable rents or shared ownership.

Under the plans, all new Metropolitan Valley Thames’ homes will meet at least Energy Performance Certificate (EPC) B standard, or better, while 75% of existing homes will be upgraded to meet a minimum of EPC C by 2026. Ensuring that housing is greener will be vital if the UK is to be a net-zero country by 2050 given that housing is responsible for around a third of the country’s carbon emissions.

The acquisition of Fizzy Living substantially increases Greystar’s footprint in London – adding 974 units to its portfolio. Seven of the developments – Canning Town, Lewisham, Epsom, Stepney Green, Poplar, Walthamstow and Hayes – are fully operational with the Silvertown asset due for completion by the end of 2021.

Greystar will implement a proactive value-add strategy across the portfolio including capital improvements, repositioning to support leasing and other operational enhancements. Using its market leading global operational platform, Greystar will ensure each asset is tailored to the needs of its local audience and amenitised accordingly with resident experience at the heart of its approach.

“Housing associations have always been at the forefront of innovation, going into markets and locations others don’t. We are extremely proud to have continued that tradition by pioneering a new approach towards the Build to Rent market with Fizzy Living.

“When we established Fizzy nearly a decade ago, it was the UK’s first true Build to Rent brand, offering much needed rental housing to the city’s young professionals. Not only has it helped provide homes, Fizzy has also spurred institutional investment into the UK through launching and establishing Build to Rent as an asset class.

“Now that the whole Build to Rent sector is firmly established in the UK, this is the right moment to relinquish our remaining stake. Metropolitan Thames Valley Housing has always had an exit strategy for our investment in Fizzy, and Greystar is the right exit partner and we look forward to seeing them take the Fizzy brand to the next level.”

Geeta Nanda, CEO, Metropolitan Thames Valley Housing Association