Cortland triples UK homes target with LIV buy

US build-to-rent operator Cortland has upped its ambitions for the UK with a goal to manage 30,000 homes. Cortland will seek to grow the newly-acquired property management business LIV Group. It aims to deliver 10,000 owned and operated homes and 20,000 third-party managed homes under LIV. The target is a significant jump from Cortland’s vision to deploy £4bn of investment to build a portfolio of 10,000 homes from its launch in 2018. Cortland’s president for Europe Paul Wrights said: “We still intend to own and operate more than 10,000 apartments here. On the third-party management side the goal is really two times that. “The LIV acquisition gives us a team already in place that can manage those communities and get us there more quickly.” Cortland’s own portfolio comprises two sites in Watford (pictured) and Woking, but it has yet to lock down new developments in its 18 months, facing premium land costs, lengthy planning waits and limited developments. Last month, EG revealed that Cortland had stepped away from its acquisition of Dandara’s 3,000-home portfolio in Birmingham, Manchester and Leeds after months of due diligence over the built assets. Cortland currently owns around 1,000 homes with LIV’s third-party management business adding 2,000 BTR homes (1,445 on behalf of large institutions), with 8,000 additional leasehold properties under its block management arm. Wrights said: “Cortland did not acquire LIV with the intent of stopping what they were doing, but really providing them with more resources to expand on that from an institutional standpoint, as well as the customers living in the communities.” The acquisition has seen Cortland grow to 155 employees and has also given it a foot in the door to Dublin’s emerging BTR market. Wrights also said it is hiring new business development positions to support growth of its third-party platform. For now, Cortland will keep its London head office as the centre of corporate and investment operations and LIV will continue to operate under the brand from its office in Leeds. Wrights added: “This wasn’t the only acquisition we intend to make. We are looking for other opportunities, especially around acquiring existing stock, and we are talking to affordable providers and home builders.” He said the business is looking at forward funding opportunities and JVs, with an immediate focus in Leeds, Birmingham, Manchester and Liverpool, alongside growth in Greater London. Wrights was appointed Cortland Europe president in July, promoted from the role of executive vice president of finance and development in which he led strategic investment activity, including its UK launch. His promotion is evidence of Cortland’s commitment to the UK. After completing a $1.2bn (£1bn) acquisition of Pure Multi-Family REIT in Canada last month, the company released an announcement saying it “will now focus entirely on UK expansion”. Cortland was established in 2005 and is headquartered in Atlanta. The business owns and manages more than 55,000 apartments in the US and has a global materials sourcing office in Shanghai. Its expansion comes as US developers and investors ramp up UK acquisitions, with already £200.3m in transactions this year and more on the cards with CBRE’s £267.4m acquisition of Telford, and a flurry of acquisitions from Greystar and Invesco. To send feedback, e-mail emma.rosser@egi.co.uk or tweet @EmmaARosser or @estatesgazette