Oxford Properties Group ,a leading global investor, developer and manager of commercial real estate, and Delancey Real Estate Asset Management Limited announce that DOOR S.L.P. has raised up to £250 million from Alecta, the €95 billion Swedish pension fund. DOOR is a dedicated residential investment vehicle, co-sponsored by Oxford and DV4 Limited (“DV4”), a Delancey advised client fund, which, alongside APG and Qatari Diar, owns Get Living, the UK’s most experienced and progressive build-to-rent operator of large-scale residential neighbourhoods.
This is the first time DOOR has sourced funding from external investors. The capital will be used to invest in Get Living’s existing development pipeline and for further large-scale acquisition opportunities as the platform pursues its ambition to become the pre-eminent UK-wide build-to-rent provider.
DOOR, which was seeded with £600 million of capital from Oxford and DV4, acquired a 39% stake in Get Living in August 2018. DOOR subsequently selectively approached large-scale like-minded strategic capital to participate alongside their initial investment. The Alecta investment is the first commitment from this external fundraise and brings DOOR’s current capital commitments to up to £850 million. The capital will be used to facilitate the continued growth of Get Living’s portfolio, which currently targets up to 12,000-14,000 homes, a scale which the sponsors hope will drive further operational efficiencies, investor outperformance, and an exceptional customer proposition.
Get Living currently comprises approximately 3,000 operational homes, mainly across two London schemes at East Village, the former Athletes’ Village at Queen Elizabeth Olympic Park in Stratford, and Elephant Central in Elephant and Castle, with a smaller neighbourhood at Middlewood Locks, Manchester. The portfolio also features approximately 1,000 homes currently under construction and a secured development pipeline of 4,000 homes, located at East Village, Elephant & Castle and Middlewood Locks, as well as two sites in the key regional cities of Glasgow and Leeds. Delancey and Qatari Diar are providing development manager services on the various schemes.
The Get Living strategy is underpinned by a continued lack of high quality rental accommodation in the UK, combined with ongoing unaffordability of house prices for first time buyers, which has created substantial demand in a nascent professional build-to-rent sector supported by significant institutional investment over the past few years.
Get Living continues to target large scale development sites across the UK that comprise 400 units or more once complete to create vibrant residential-led neighbourhoods, as well as stabilised assets, forward funding and corporate acquisitions.
Pic : East Village at Queen Elizabeth Olympic Park, London
Source : Oxford Properties