UK Single-Family Housing
Overview
Investment Approach
An opportunity to invest and work alongside Fiera Real Estate and Packaged Living to push further into the single-family housing growth space through the creation of an impact vehicle, with a target size of c. £1bn over the next five years.
The strategy is seeking to build on the early mover advantage to achieve a net 10-12% IRR for investors pre-tax, driven by annual rental appreciation and capital growth. Investments will be focused on new build, ESG exemplar assets only with a preference for forward fundings. The impact led vehicle offers investors an end-to-end solution from site acquisition through to delivery and ultimate long-term ownership and operation of single-family housing in the UK.
Fiera Real Estate is partnered with Packaged Living, a leading sustainable living specialist, who is part of Fiera’s operating partner network and a majority owned residential subsidiary. The company manages over £590m in assets across 1,500 single‑family homes, alongside a multi‑family portfolio of 2,900 homes, making it one of the UK’s largest purpose‑built rental developers and a market‑leader in operating rental living assets in the sector.
With a leading market presence and a proven track record in single-family housing, Fiera Real Estate and Packaged Living are uniquely placed to capitalise upon the opportunity.
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 dynamic based around the following key principles:
Challenged Affordability
Owner occupier markets have become increasingly unaffordable driving all Build-to-Rent (BtR) segments.
Low Construction Risk
Reduced construction risk from building individual houses at scale, via forward fundings/commitments with established market-leading housebuilders only.
Institutional Scale
Well executed single-family housing strategies provide a rare opportunity for achieving institutional access at scale in the traditionally granular UK residential rental market.
Downside Mitigation
Buying at a bulk discount vs sale values provides downside mitigation.
Potential Early Mover Advantage
Fiera Real Estate and Packaged Living are established as one of the most prolific allocators of capital into the UK single-family housing market.
Impact Vehicle
The strategy will deliver against key impact themes by providing high quality, low carbon homes to underserved communities, enabling tenants to benefit from financial security, whilst driving local economic growth.
Single-Family Track Record
Since 2015, Fiera Real Estate has been active across residential markets achieving residential planning approval for 10,800 units across the UK. Over the past three years, Packaged Living has become one of the UK’s largest single-family rental housing aggregators and operators with a secured portfolio of 1,500 homes.
Market Themes
Growth
Demand
driving demand over supply
Unique Access
Returns
Investment strategy is focused on:
- Single-Family units – A single household, or family, living within their own stand-alone home. Focus is on forward fundings and forward commitments. New build assets only.
- Likely portfolio – c.3,000 units across c.20 schemes. Target 100-200 homes per scheme, majority 2- and 3-bedroom houses.
- UK wide – Suburbs of UK cities and towns with strong local amenity offering and access to transport. Likely South-eastern focus.
- Impact – Key impact goals, objectives and measurables (see below), with a focus on intentionality, additionality, dual focus and contribution. All construction is subject to Packaged Living’s Sustainable Design Specification.
Impact Objectives
The strategy will deliver high-quality, low carbon homes to underserved communities, with the following impact objectives:
- Increase access to high-quality rental homes in underserved areas that provide tenants with financial security.
- Leverage partnerships to drive local economic growth and strengthen community resilience.
- Reduce carbon emissions through sustainable building practices and energy efficiency.
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 (SDGs), 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:
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