Waypoint launch £150m affordable SFH seed portfolio strategy

Waypoint's new single-family housing (SFH) investment opportunity combines a strategic housing composition of significant scale with promising financial returns.

Waypoint has launched its ‘Waypoint Affordable Single-Family Housing Fund’ with Wise Living | BTR News
Waypoint has launched its ‘Waypoint Affordable Single-Family Housing Fund’ with Wise Living.

Property asset manager Waypoint has launched its UK ‘Waypoint Affordable Single-Family Housing Fund’ focused on new build, affordable SFH. The vehicle will be kick-started with a £150m seed portfolio and targets potential annual returns to investors of over 15%.

Delivered in partnership with Wise Living, the new fund will build upon Waypoint’s expertise in real estate investment and asset management, and Wise Living’s extensive experience as a specialist SFH Build to Rent provider. 

A key strengths of the strategy is the seed portfolio which provides 531 homes across seven sites, with a gross development cost of c.£150m – all of which are ready to start on-site imminently. The seed portfolio underlines a significant financial commitment to the affordable housing sector, but also provides attractive returns to those wanting to take advantage of the current market conditions.

“There is a pressing need for all forms of quality housing in the UK, and this fund has been created to help the thousands of hard-working individuals and families who are looking for a place to call home. Demand for this is high and has been further exacerbated by the current turmoil in the single-family rental sector as more and more private landlords exit, making the untapped opportunity even stronger. This provides a very healthy, secure, and long-term sector for institutional investors to now get involved at a cyclical point where yields are at a historical high. By prioritising properties in locations with easy access to essential local amenities and employment zones, we aim to provide not just bricks and mortar, but homes that support the wellbeing and economic stability of our tenants. This approach is not only socially responsible but also aligns with our goal of delivering sustainable, long-term returns to our investors.”

Paul Dennis-Jones, Fund Manager, Waypoint

Behind the portfolio, a wider identified pipeline of 1,979 homes across 25 sites has a gross development cost of c.£570m. 90% of the portfolio is dedicated to houses, with the remaining 10% comprising apartments. This mix aligns with Waypoint’s commitment to providing family-friendly housing options and reflects market demand.

“The ‘Waypoint Affordable Single-Family Housing Fund’ presents a compelling investment opportunity, comprising significant scale, strong developer partnerships, and well-established predictable returns. This approach is built on a solid foundation which not only gives investors significant and predictable returns, but also helps to address the critical need for high-quality and professionally managed affordable housing in the UK. We have years of experience in helping investors to make the most of the opportunities that are available in the market and look forward to helping to deliver more projects through this new fund.”

Paul Staley, Managing Director, Wise Living

With a commitment to sustainability and ethical investment, the fund has a strong focus on environmental, social and governance (ESG) criteria. Strategically, the fund will develop new SFH schemes that are affordable and cater to the needs of key workers and those on average incomes.

Wise Living has been operating for over ten years and has delivered over 7,500 new homes with a GDC of £1.9bn for many Build to Rent investors.