logo
伦敦 icon
icon 伦敦 icon
新闻与资讯
Blackstone and Vistry Strike £580 Million Deal to Transform the UK Rental Market
六月 18, 2024
Blackstone and Vistry Strike £580 Million Deal to Transform the UK Rental Market 伦敦
By   Internet
  • 都市报
  • UK rental market
  • housing investment
  • affordable housing
  • rent increase
Abstract: The collaboration between Blackstone and Vistry is not only advancing both companies in the market but also injecting new momentum and opportunities into the UK rental market. With the continuous influx of significant capital, the future of the UK residential market will become more diversified and dynamic, offering more high-quality housing options for the broader public.

According to the Financial Times, private equity investment group Blackstone recently reached a significant agreement with homebuilder Vistry to purchase approximately 1,750 newly built homes for rental purposes at a cost of £580 million. This marks the second major deal between Blackstone and Vistry in eight months, with a total investment amounting to £1.4 billion, expected to fund over 4,500 homes.


Traditionally, the UK rental market has relied heavily on small private landlords, but this is changing. The entry of large capital is gradually reshaping the market landscape. Compared to other sectors, residential real estate is more resilient to market downturns caused by rising interest rates, attracting a growing number of large institutional investors. Experts from Blackstone’s European real estate division highlight that institutional private capital can play a crucial role in providing high-quality housing, especially amidst the current severe shortage in the private rental market.


Blackstone has long invested in housing in the US and holds a portfolio of tens of thousands of homes in Europe. In the UK, Blackstone primarily funds new build projects, with the properties from this transaction to be managed by Leaf Living. Leaf Living, a company established by Blackstone and Regis in 2021, specializes in managing single-family rental homes in the UK and currently owns about 500 homes. Additionally, Blackstone supports Sage, a company with a portfolio of 16,000 affordable homes aiming to reach 30,000 units by 2030. Moreover, Grainger, the UK’s largest listed landlord, manages around 10,000 homes.


Blackstone and Vistry Strike £580 Million Deal to Transform the UK Rental Market

Internet


According to UK government statistics, the average rent for private residences increased by 8.9% as of April. Since acquiring homebuilder Countryside in 2022, Vistry has shifted its strategic focus to joint development. Vistry indicated that the homes sold to Blackstone are primarily located in the southeast of England. Vistry CEO Greg Fitzgerald stated, "This agreement supports our differentiated business model. The certainty provided by pre-selling homes allows us to accelerate construction plans, ensure supply chain employment, reduce sales and construction costs, and create vibrant new communities." Vistry anticipates a 10% increase in new home completions this year.


Analysis by the Financial Times suggests that England needs up to 500,000 new homes annually to meet the growing population demand, far exceeding the housing targets promised by the Conservative or Labour parties. Record levels of immigration and domestic demand growth, coupled with historically low housing supply, have thwarted the housing goals of both major parties. Projections indicate that if the current net immigration levels persist, 421,000 to 529,000 new homes will be needed each year.


These transactions and market trends indicate that with the influx of large capital, the UK residential market is undergoing profound transformation. Institutional investors are becoming increasingly important in providing housing supply and driving market development. Through collaboration with Vistry, Blackstone is not only strengthening its position in the UK real estate market but also helping to alleviate the country’s housing shortage by offering high-quality rental homes.


Vistry’s strategic shift and partnership with Blackstone illustrate how large real estate developers can optimize resources and enhance market competitiveness through cooperation with private equity funds. Blackstone’s active expansion in the UK reflects its confidence in the future growth of the UK rental market. Through platforms like Leaf Living and Sage, Blackstone is committed to providing more high-quality rental housing options for UK residents, aligning with the growing demand for premium rental housing in the current market.

留言
icon
请输入您的国籍
+87
不能为空
电子邮件地址无效 电子邮件地址未验证!
icon
欢迎访问 House.com
登录或注册以充分利用您的体验。这也将增加您与经纪人交流的机会。
请输入有效的电子邮件地址。
继续使用 Google
提交即表示我接受House.com的   使用条款
icon icon
验证您的电子邮件
你好 我们刚刚将验证码发送到您的电子邮件中。请检查并在此处输入验证码以继续登录。
验证码错误
没有收到电子邮件?请检查您的垃圾邮件文件夹
icon
banner
Blackstone and Vistry Strike £580 Million Deal to Transform the UK Rental Market
icon 复制链接
icon WhatsApp
icon Facebook
icon Twitter