This is the bank’s latest venture in the build-to-rent (BTR) sector, having already established two significant BTR property portfolios, including the 918-unit Thistle portfolio, which was sold to Goldman Sachs Merchant Banking Division and Pitmore for approximately £150m.
The JV aims to become one of the UK’s largest providers of purpose-built single-family rental homes.
It has already secured an initial seed portfolio of four sites, acquired in partnership with housebuilder Countryside Properties, specialising in mixed-tenure and regeneration projects.
They have an emphasis on placemaking design, which involves consideration of the physical, environmental and social characteristics of a site and its context, in order to arrive at an integrated and sustainable vision for new development.
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The properties comprise 321 single family homes, located in established residential communities in the Midlands, Greater Manchester and Merseyside.
The JV will also seek to strengthen existing partnerships and develop new relationships with other housebuilders across the UK to forward fund developments of new rental homes for families, which will expand the portfolio to its target of 2,500 houses.
Paul Stockwell, chief commercial officer at Gatehouse Bank, said: “We are delighted to have found an experienced, institutional partner in TREP as we launch our third major private rental investment initiative.
“This JV will see significant capital being deployed to build and develop the next generation of BTR housing, concentrating on high quality family homes in suburban locations.”
James Piper, partner at TREP, commented: “We are pleased to be partnering in this JV with Gatehouse, a skilled operator in the UK’s BTR market.
“TREP has a strong track record of developing and owning high quality private rental assets in North America, and we are excited to leverage this expertise to achieve similar success in the UK, where there is strong and growing demand for new-build rental homes.
“With this initiative, we aim to be a valued partner not only to homebuilders, but also the communities and families that will call these properties home.”