UK Garden-Style Housing
Overview
Investment Approach
An opportunity to work with Packaged Living, the pan-European rental living arm of Fiera Real Estate, and solve the unmet institutional investor and consumer demand for professionally managed rental housing located in UK fringe-urban locations.
The strategy is seeking a strategic equity capital partner to provide >£70m for the acquisition, delivery and operation of Garden-Style Housing communities in fringe-urban locations across the UK, aiming to combine the operational efficiency of Single-Family Housing, alongside the rental premiums of Multi-Family Housing.
Packaged Living is a market leading vertically integrated rental living investor, developer and operator. The business spans the entire residential property life-cycle including: land acquisition, planning, design, development, delivery, asset management and property operations.
Target returns are not guaranteed. Inherent in any investment is the potential for loss.
Key Principles
The strategy is well positioned to capitalise on a favourable market dynamics based around the following key principles:
Gateway Homes
Addresses a need for the ‘halfway’ generation of renters – those requiring larger living spaces but wanting to remain connected to the benefits of town and city living.
Community and Connectivity
Garden-Style Housing is comprised of a mixture of apartments and townhouses designed around shared community spaces located in fringe urban locations.
Limited Construction Risk
Reduced construction risk from building low-rise homes at scale.
Challenged Affordability
Owner occupier markets have become increasingly unaffordable driving all Build-to-Rent (“BtR”) segments.
Diversification
Garden-Style Housing provides exposure beyond urban multi-family, offering long-term, stable and inflation-linked income streams.
Market Themes
Undersupply
Returns
Scalable Delivery
Lifestyle
Investment strategy is focused on:
- Garden-Style Homes – An emerging living sector asset class that captures the core plus features of single-family housing (efficient build costs, straight line leasing profiles and low operating expense ratios) whilst simultaneously delivering the development ‘alpha’ more commonly found in value-add business models.
- Likely Portfolio – An aim to deliver >1000 homes on multiple 5 acre+ sites that are able to accommodate a minimum of 100 homes (with no more than 50% apartments).
- UK Wide – With a strong focus on the Midlands and South-West of England
Sustainability Focus
The strategy will deliver high-quality, low carbon homes to underserved communities, with the following objectives:
- Increase access to high-quality rental homes in underserved areas that provide residents with financial security
- Reduce carbon emissions through sustainable building practices and energy efficiency
- Leverage partnerships to drive local economic growth and strengthen community resilience
Fiera Real Estate supports the Sustainable Development Goals
In 2015, all UN Member States adopted the 2030 Agenda for Sustainable Development. Underlying ‘Agenda 30’ are 17 Sustainable Development Goals (“SDG”s), which address the urgent call to end extreme poverty, fight inequality and injustice and to protect our planet.
The targets we have set for ourselves in order to meet our ESG commitments have been aligned with a number of these SDGs, but we have placed particular focus on the below:
