Hestia doubles up at Peel’s Pomona Wharf
Federated Hermes’ build-to-rent business, Hestia, is to develop 162 flats with Peel L&P in the second phase of Pomona Wharf at the Manchester Waters scheme.
Hestia has agreed to forward fund the development on behalf of the British Telecom Pension Scheme, doubling its ownership at the site.
Peel L&P and Hestia have launched a public consultation on the proposals for two blocks of up to 14 storeys, with a view to submit plans next year.
Federated Hermes’ build-to-rent business, Hestia, is to develop 162 flats with Peel L&P in the second phase of Pomona Wharf at the Manchester Waters scheme.
Hestia has agreed to forward fund the development on behalf of the British Telecom Pension Scheme, doubling its ownership at the site.
Peel L&P and Hestia have launched a public consultation on the proposals for two blocks of up to 14 storeys, with a view to submit plans next year.
The scheme will be an extension to the existing 164-flat Pomona Wharf, which was one of the first BTR investments from Federated Hermes and BTPS. The acquisition was agreed in 2015, and the site has been operating for four years.
Will Gibby, director of fund management at the international business of Federated Hermes, told EG: “We selected Pomona back in 2015 because it was a differentiated site relative to what else we saw going on. The economics of the deal allowed us to put in place a starter rent that we felt would better appeal to a wider audience.”
That mid-market rent strategy translates to around £20-21 per sq ft, with occupancy of 97% in phase one. Hestia aims to offer the same rents and offering in phase two.
The development will include greater shared amenities and services in the connecting structure linking the two properties. The new proposals incorporate a residents’ lounge and podium garden terrace.
James Whittaker, executive director for development at Peel L&P, said: “The sustainable development is consistent with the agreed masterplan for Manchester Waters, which is in close proximity to two Metrolink stations and overlooks both the Manchester Ship and Bridgewater Canals.”
Gibby added: “There is a size and scale now that takes it into something which is more institutional. That scale gives us operational efficiency, which is a benefit to our customers and our stakeholders. It is ultimately a more appropriate liquid investment for our client and our customers.”
Gibby said that the deal reflected the “growing maturity” of the sector, some six years after the first acquisition was agreed.
After entering the sector in 2014, Federated Hermes launched the Hestia operating platform at the end of 2019. The fund manager has since made a series of acquisitions in Lewisham, Leeds and Brighton, with the latest deal now bringing this to 1,353 homes.
Hestia aims to deploy £1bn in BTR over three years and is pursuing a pipeline of schemes across the UK, as well as additional funding from other institutional investors.
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Image © Peel L&P/Hestia
