TPG Real Estate Partners and Gatehouse Bank have agreed a single-family housing build-to-rent joint venture, with an initial development value of £500m.
The jv has secured its first four sites comprising 321, to be acquired from housebuilder Countryside. It aims to grow this to 2,500 homes valued at £500m in the Midlands, Greater Manchester and Merseyside.
TPG and Gatehouse aim to grow the portfolio with further projects in the Midlands and the North via new housebuilder partnerships.
The joint venture is TPG’s first investment in UK BTR, following success in the US. The real estate division has $5.6bn (£4bn) in assets under management in the US and Europe.
It is the third and largest venture for challenger bank Gatehouse, which previously financed the £150m Thistle portfolio, which was sold to Goldman Sachs earlier this year.
James Piper, partner at TPG, said: “[TPG] has a strong track record of developing and owning high-quality private rental assets in North America, and we are excited to leverage this expertise to achieve similar success in the UK, where there is strong and growing demand for new-build rental homes.”
Paul Stockwell, chief commercial officer and head of real estate at Gatehouse, added: “This joint venture has the necessary capital to build and develop the next generation of build-to-rent housing.”
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