February 14, 2019
Schroder Real Estate and Palmer Capital have completed the final close of the Residential Land Partnership (RLP) with commitments of £70m.
The fund was launched in October 2017 to tackle the undersupply of housing while generating strong returns repositioning sites for residential use.
It has already deployed 80% of its capital to five schemes in Milton Keynes, Manchester, Surrey, Crawley and Kings Langley.
The £70m funding came from a mix of corporate and local authority pension schemes. The unlevered fund is designed to deliver a 12-15% IRR, net of all fees, over five years.
Graeme Rutter, head of Schroder Real Estate Capital Partners, said: “The depth of demand for RLP demonstrates the strong investor interest this strategy. We are delighted with the progress to date and the strong deal pipeline which will deliver more dwellings into the UK housing market.”
Chris Button, head of value add REIM at Palmer Capital, added: “We are excited by this new commitment and look forward to transacting our pipeline of deals for our investors. The acquisitions to date have been in line with our strategy to facilitate much needed residential development by buying sites unconditionally, obtaining planning consent and selling these ‘oven ready’ sites to housebuilders.”
Taken from an original article published by Emma Shone in Property Week in February 2019.