AIMCo pushes for BTR expansion with second portfolio deal

Canadian fund AIMCo is in advanced talks on its second build-to-rent partnership in the UK, bringing the portfolio to £400m. It is expected to complete a £75m equity deal to develop Platform_’s £250m regional portfolio by the end of this month. The purchase would bring AIMCo’s portfolio to 1,639 flats across five regional cities. Westrock-backed Platform_ launched a hunt for finance last October to build out 1,039 flats in Sheffield, Glasgow and Cardiff last year. The acquisition follows on from a debut £150m deal with Ridgeback, picking up consented sites in Manchester and Birmingham to build out in a joint venture. AIMCo has instructed Eastdil Secured to source debt for both portfolios, seeking £120m to build out the 600 flats with Ridgeback and a further £130m for the Platform_ construction. The debt is also due to be raised by the end of the month. AIMCo is one of Canada’s largest investors, with a global portfolio of investments held with jv partners in office, retail, industrials and BTR. The fund’s international strategy is opportunity-focused, directly and through co-investments with local partners. While it has BTR in Canada, until recently it has so far stuck to commercial assets and development via partnerships in the UK. As the sector matures, an increasing number of Canadian funds have entered the UK market. AIMCo’s deals follow QuadReal’s £570m purchase of Realstar’s BTR and student portfolio and a £100m forward-funding deal from Realstar, backing HUB’s latest Wembley scheme. The investment comes as regional BTR growth continues to outpace London. The latest figures reveal a 11% hike in the number of homes in construction in the regions over the course of a year, where London has remained static. Further increases of 42% in the number of homes in planning in the regions versus just 2% growth in London point to ongoing investment opportunities. Eastdil Secured is advising Platform_ on the equity raise and AIMCo on the debt sourcing. To send feedback, e-mail emma.rosser@egi.co.uk or tweet @EmmaARosser or @estatesgazette Photo: Platform_