Realstar launches £600m resi sale
Realstar, one of Canada’s largest property firms, has launched the sale of a portfolio of more than 1,300 build-to-rent and student flats across the UK, with a price tag of £600m.
The sale of income-producing assets is a major milestone for the burgeoning rental sector, as the first portfolio of purpose-built operational stock in the capital.
Realstar has appointed Eastdil Secured to manage the sale of eight stabilised rental assets, with seven in zones 1-2 in London and one central Manchester property.
Realstar, one of Canada’s largest property firms, has launched the sale of a portfolio of more than 1,300 build-to-rent and student flats across the UK, with a price tag of £600m.
The sale of income-producing assets is a major milestone for the burgeoning rental sector, as the first portfolio of purpose-built operational stock in the capital.
Realstar has appointed Eastdil Secured to manage the sale of eight stabilised rental assets, with seven in zones 1-2 in London and one central Manchester property.
There are six build-to-rent schemes from Uncle platform, valued with a yield of 3.25-3.5%, in line with the market average for prime central standing stock. Two student housing schemes have a higher estimated yield of around 4%.
The properties have all been developed or acquired by Realstar over the past six years on behalf of a private family office.
It includes Realstar’s first BTR scheme in the UK, the 45-storey Highpoint building (pictured) comprising 279 flats in Elephant & Castle, which was agreed in 2014 and completed in 2018.
The other BTR assets are Uncle’s properties in Stockwell (226 flats), two buildings in New Cross (101 and 54 flats), Manchester (171 flats) and Hackney Wick (105 flats). There are two student buildings at Ravenscourt House in Hammersmith (235 beds) and Canto Court in Shoreditch (164 beds).
Eastdil will market the portfolio over the summer, with preferred parties to submit bids next month and a completed sale to be achieved before the end of the year.
The investor was one of the first movers and most active investors in BTR. Following its entrance in 2014, it has since moved on to schemes in outer London, with more recent forward funded developments in Wembley, Southall and Ilford, and a longer-term plan to continue investing in new sites.
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Photo © Realstar
