BlackRock’s European Property platform and Outpost Management, a residential focused real estate asset management firm based in London, have formed a new joint venture to invest £500 million in UK residential assets.
The venture plans to focus on multi-family residential assets in key cities where demand outweighs supply.
The joint venture has completed the seed acquisition of a brand-new freehold asset at 101 Camley Street, adjacent to King’s Cross and St Pancras stations, and comprising 121 residential units along with 30,000 sq ft of flexible commercial space, set in a landscaped urban garden on Regent’s Canal. Innovative building design features and investment in sustainable technologies to reduce energy consumption and improve water use have resulted in the asset securing a Building Research Establishment Environmental Assessment Method (BREEAM) Excellent rating.
Outpost will operate the property on behalf of BlackRock under Outpost’s new residential platform. The asset was acquired vacant on practical completion of the residential units, with Outpost’s business plan to operate the estate as Build-to-Rent, while investing in additional amenities including a resident gym, sky lounge, private dining room, co-working zones, and a dedicated 24/7 on-site service team.
James Halstead, Director, BlackRock European Real Estate, said: “As workers return to cities following the pandemic, we see high-quality residential sites in prime locations as an opportunity. Camley Street is set to benefit from tenants’ desire for easy access to the burgeoning life-sciences and technology scene in King’s Cross, nearby parks, and amenities. As competition for residential units intensifies, this acquisition demonstrates our continued ability to source attractive deals and we’re thrilled to partner with Outpost.”
Troy Tomasik, Outpost Management founder and CEO, says: “Camley Street is arguably the most important prime residential asset to come onto the central London Build-To-Rent market. Its Zone 1 location adjacent to the King’s Cross lifestyle and employment hub, combined with our value-add amenity expansion and service offering, will ensure a world class living experience for residents. Securing this site in partnership with BlackRock is a huge achievement for Outpost and is an important step for us as we build a market leading rental housing platform in Europe.”