Successful final close of Hearthstone Residential Fund 2 at £152m

Hearthstone Investment Management raises £152m for its Hearthstone Residential Fund 2, which recently acquired a BTR scheme in Derby.

Build to Rent scheme in Derby, recently acquired for Hearthstone Residential Fund 2 | BTR News
Build to Rent scheme in Derby, recently acquired for Hearthstone Residential Fund 2.

Hearthstone Residential Fund 2 (HRF2) was launched in November 2020, and is the latest in the HRF series, following HRF1 which launched in 2017 and is now fully invested. HRF2 had a first close of £97m in 2020. Further investments from Teesside Pension Fund and Cumbria LPGS were secured in 2021, bringing the capital raising period to a close. Hearthstone Investment Management announces that its HRF2 raised a total of £152m.

“We were delighted to achieve a successful final close, particularly during the pandemic, and are already making significant progress in investing for the fund.”

Michael Dinsdale, Head of Investor Relations, Hearthstone

Hearthstone Investment’s is committed to working with housebuilders in the transition towards net zero. With a strong focus on ESG, the investment strategy emphasises regional diversification. The fund is a ten year closed-ended fund which invests in UK suburban private rented housing. Hearthstone targets good quality homes in areas of strong rental demand, and which are affordable to families, young professionals and key workers on average incomes.

“We invest in the suburban residential market where we see attractive opportunities, not only for returns, but also for meeting the need for good quality rental homes.”

Andrew Smith, CIO, Hearthstone

Since the launch of its first fund focused on UK suburban private rented housing in 2012, Hearthstone has built a portfolio of over 1,400 homes across England, Wales and Scotland. Hearthstone Investments manages capital on behalf of a range of UK Local Government Pension Schemes – as well as other institutional and private investors.