Patrizia has purchased a build-to-rent residential tower development in west London for €45 million (£40.3 million) on behalf of one of its institutional clients.
Once finished in spring 2021, the 6,800 sqm, 102-unit build-to-rent tower which is part of the Regency Heights development in Park Royal, will include a mix of high quality one-, two- and three-bedroom apartments across 16 floors.
Regency Heights is being developed on the edge of one of London’s biggest regeneration zones.
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“There is a big demand imbalance of affordable residential housing which is expected to persist for the foreseeable future, in the UK. Plus, investors are likely to increase their allocations to residential assets, as an attractive substitute for currently low yielding fixed income. In addition, rent collection in the residential sector has remained robust throughout the COVID-19 pandemic and we are confident that this latest investment in London will deliver strong, reliable returns to our investors,” said Phil Irons, Head of Transactions for the UK and Ireland at Patrizia.
The acqusition increases Patrizia’s AUM to over €12.7 billion in the residential sector, said Patrizia.