Macquarie’s UK BTR platform Goodstone Living has established its first fund targeting the build-to-rent residential real estate sector following the final close of Goodstone Living Partners 1.
The Fund, which is subject to Article 8 under the EU’s Sustainable Finance Disclosure Regulation, has secured equity investments from a number of UK and international investors including Northern Local Government Pension Scheme (Northern LGPS), providing the specialist real estate developer and investment manager with over £550 million of investment capacity.
With a ‘develop-to-hold’ investment strategy, the Fund is focused on delivering and operating the next generation of rental residential communities across London and major regional UK cities for long term ownership.
The Fund’s initial portfolio comprises almost 1,000 high quality homes already under construction in Edinburgh and Birmingham. The Fund will also be the primary vehicle for Goodstone Living’s pipeline of development and turnkey opportunities until its capital has been substantially allocated.
The Fund is focused on both decarbonisation and social value initiatives, specifically targeting a +30 per cent reduction in embodied carbon emissions and +50 per cent reduction in operational carbon emissions. Rental homes will be offered at mid-market price points, with +50 per cent of private units to be attainable by +50 per cent of local residents. All buildings will also be designed with dual staircases to maximise resident safety and wellbeing.
Iliya Blazic, Chief Executive Officer, Goodstone Living, said: “The successful launch of our first managed fund and ability to attract high quality institutional capital partners speaks to the confidence global investors have in the underlying fundamentals of the build-to-rent sector, as well as Goodstone Living’s vision of creating a better way to rent.
We are excited to support our capital partners in creating next generation rental communities that integrate innovation, sustainability, wellbeing and customer service into every decision.”
Kevin Etchells, Greater Manchester Pension Fund on behalf of the Northern LGPS, said: “We are delighted to announce Greater Manchester Pension Fund’s commitment to Goodstone Living Partners 1 alongside our Northern LGPS partners, West Yorkshire and Merseyside pension funds. This partnership already has two developments underway in Birmingham and Edinburgh and we are excited to see the portfolio develop further.
“The UK has an acute under supply of housing and Greater Manchester Pension Fund is proud to contribute to help solve this whilst also hopefully obtaining attractive risk adjusted income returns.”
James Bechely-Crundall, Senior Vice President, Macquarie Asset Management, said: “Our investment in Goodstone Living on behalf of our managed funds is aligned to our strategy of establishing and incubating specialist real estate managers in sectors we believe are supported by significant structural tailwinds.
“We believe that a scalable market opportunity exists in the UK rental residential sector and that Goodstone Living is well positioned and has the capability to promote decarbonisation initiatives and create social value in the local communities in which it operates.
“We would like to congratulate the team on the closing of their first managed fund, which marks a major milestone in Goodstone Living’s short history. We look forward to continuing to work with the business and its capital partners to support their growth ambitions.”
