BauMont Real Estate Capital and its operating partner Addington Capital have purchased a residential portfolio in East London from a private investor for £99 million.
The portfolio consists of 318 houses and apartments, which are primarily leased to young professionals and families.
This deal is a follow-on for BauMont and Addington, who together acquired a portfolio of 182 apartments of mainly converted Victorian and Edwardian houses mostly in the borough of Croydon, South London for around £37million in October 2019.
The new portfolio acquisition is in Walthamstow and surrounding areas including Leyton, Leytonstone, Barking and South Woodford. It includes both Victorian and post war accommodation, as well as purpose-built apartments on the sought-after Warner Estate built at the turn of the last century. Walthamstow itself is popular due to its strong transport links to Central London, local parks and wetlands and increasingly fashionable bars and restaurants.
Addington’s sister company AddLiving, the residential management business, will provide property management services to the portfolio, with Addington Capital as asset manager. The properties will be held for income and capital growth and refurbished to improve energy efficiency and to meet the requirements of the generation of people moving into this area of East London which is driving the ongoing gentrification.
Harry Wentworth-Stanley at BauMont, said: “Given its characteristics, the portfolio will be resilient and offer well-located, good quality and affordable homes in an undersupplied segment of the market. We are delighted to be working with Addington again who are experienced in managing this type of portfolio and have an excellent track record.”
Matthew Allen, Principal of Addington Capital said: “We are continuing to look for value-add opportunities in the Greater London residential markets, where we can achieve portfolio discounts and can invest to modernise and improve the living accommodation. We are primarily looking at typically older stock (Victorian or pre-war) in Zones 3-6 and in emerging and gentrifying locations.”
“The Greater London market still offers strong fundamentals. The shortage of housing at affordable price points in London remained acute throughout the pandemic and is likely to become more severe as the capital recovers in 2022 and beyond. We are delighted to be working again with the BauMont team in pursuing this strategy.”