Barings makes UK PRS debut

Barings Real Estate, part of Barings LLC, has entered the UK private rented sector with the acquisition of a site in Liverpool. The company has bought residential property The Keel, at Queens Dock, for £46.75m from Moorfield Group on behalf of one of its funds. The acquisition also includes an adjacent plot of land which is fully consented for PRS development. The investment has been made as part of Barings’ pan-European core investment strategy on behalf of institutional investors. The Keel, a Liverpool landmark, is comprised of 240 apartments (425 beds) across 170,500 sq ft arranged over ground and four floors. Formerly Her Majesty’s Revenue and Customs’ Liverpool office, The Keel was recently converted to a high-quality mid-market residential apartments. Darren Hutchinson, managing director and head of UK real estate transactions at Barings, said: “This transaction presents a rare opportunity to acquire a well-located operating PRS asset in an iconic building on Liverpool’s riverside. “We believe there is an opportunity to add value through leasing up the vacant apartments and capturing rental reversion as a number of short-term leases in The Keel expire. “Barings believes the UK PRS sector, and the regional mid-market sector in particular, is at the beginning of a period of sustained growth.” Property company Glenbrook will continue its association with The Keel following its original role as scheme developer. Glenbrook introduced the scheme to Barings and will partner with it on the asset management of The Keel and the development of the remaining consented land that when delivered will see the size of the scheme increase to more than 500 apartments. To send feedback, e-mail anna.ward@egi.co.uk or tweet @annaroxelana or @estatesgazette