Delph Property Group’s build-to-rent brand Kooky has acquired a completed development in Staines, as part of a wider shift away from the traditional forward funding model.
The BTR brand will focus solely on built assets to grow its portfolio more quickly. It is targeting £500m by 2024.
Kooky has bought 70 apartments in a block at London Square’s Staines upon Thames scheme (pictured) for £22.1m.
The block will be its first building to come to the market, and Kooky is letting the scheme, with the first tenants to move in next month.
It is currently in legals on three other schemes in London and expects to grow the portfolio to 300 flats with an end value of more than £100m, within a year. It plans to replicate this growth over the next four years.
The developer is targeting schemes of 70 to 300 units in regional city centre locations or within a one-hour commute of London, offering competitive rents in place of expensive amenities.
Howard Crocker, managing director at Kooky, said: “To grow Kooky, our strategy going forward will be to concentrate on buildings that are already under construction and which can be bought complete and ready for branding.”
Crocker said the forward funding model has proven to be too slow, with subject-to-planning deals in particular facing long waits. Kooky will no longer proceed with forward funding schemes it had under offer in Manchester and Brighton.
Instead, Kooky is partnering with developers in the final stages, to kit out built schemes for tenants, lease and manage them.
“We are keen to talk to housebuilders that can supply stock,” said Crocker. “We want the market to know that we are here to do deals and are in a position to move very quickly.”
To send feedback, e-mail emma.rosser@egi.co.uk or tweet @EmmaARosser or @estatesgazette
