Border to Coast Pensions Partnership has agreed to buy a £400m portfolio of 866 single-family homes from Leaf Living, in what it said is the largest UK transaction in the sector so far this year.
The deal is the second acquisition in the single-family housing sector for Border to Coast’s UK Real Estate Fund, which was launched 18 months ago and now has more than £2bn in partner fund capital and assets.
Fifteen of Border to Coast’s partner funds are invested in the fund.
The fund expects to grow to around £3bn over the next 12 months.
The 12 estates are located across nine counties in southern England.
Border to Coast said the investment would provide its Local Government Pension Scheme partner funds with exposure to family rental housing, supported by long-term demand, while adding resilient income and diversification to its real estate portfolio.
According to the filing, this investment is part of Border to Coast’s strategy to deploy long-term capital into sectors offering structural growth opportunities while contributing to UK infrastructure needs.
The purchase follows a £70m commitment in February to forward-fund 139 homes at Springstead Village in Cambridge and a £43m investment in May to develop an aparthotel in Leeds, demonstrating the company’s commitment to pension schemes and real estate development.
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Joe McDonnell, chief investment officer at Border to Coast, said: “Our focus on high-quality residential property this year is helping reshape our real estate portfolio, future-proofing it for partner funds.
Striking a deal of this size is a significant achievement, and they are committed to providing additional value to the LGPS and its members.
Aberdeen Investments and Savills advised Border to Coast on the transaction, with CMS and Mourant acting as legal advisers.
Aberdeen also supported the structuring of the deal, which has been key to securing such a large transaction.
Border to Coast’s UK Real Estate Fund will continue to increase its directly held UK real estate exposure, with a focus on deploying long-term capital into sectors offering structural growth opportunities.
The fund’s investments will contribute to UK infrastructure needs, supporting the development of new homes and communities, which is a key part of the company’s strategy.
The deal’s completion is a significant milestone for Border to Coast, demonstrating its ability to secure large transactions and provide value to its partner funds.
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