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Hearthstone Investment Management adds over 100 new homes to its UK residential fund

Date 01st July 2019
Source Hearthstone Investment Management
Type Press release
  • Acquisitions across UK regions, with combined value of £31 million
  • The £200 million fund is backed by seven UK local authority pension funds

Hearthstone Investment Management Limited, an institutional investment manager specialising in UK residential property (private rented sector), has announced the acquisition of over 100 new homes in three separate deals with a combined value of £31 million, on behalf of its Hearthstone Residential Fund 1 (HRF1).

The ten-year closed-ended private equity fund announced its final closing earlier this year, with commitments of over £200 million from seven UK local authority pension funds – Merseyside Pension Fund, Tyne and Wear Pension Fund, Derbyshire Pension Fund, Nottinghamshire Pension Fund, Staffordshire Pension Fund, Teesside Pension Fund, and West Midlands Pension Fund.

The latest acquisitions are in line with the fund’s investment strategy to acquire and actively manage good quality, residential assets suitable for professionals, families and key workers in areas of strong rental demand across the UK regions. The properties, including a mix of low-rise apartment blocks and clusters of houses, are all located in well-connected areas with good local infrastructure but where there has been a shortage of good quality rented housing stock.

These new build properties will be completed in tranches throughout 2019, adding to the fund’s existing assets in a number of targeted locations. These include:

  • Greater Manchester: 19 new build houses in suburban Manchester and Wigan
  • Nottinghamshire: 8 new build houses, located two miles away from Nottingham’s city centre
  • The Midlands: 11 new build houses in Tamworth, and a low-rise block of 9 apartments in Birmingham
  • Southern England: 68 homes across the South of England, including new build houses in West Sussex, Cheltenham, Exeter and Aylesbury, a block of low-rise apartments in Bristol, and a mix of houses and low-rise apartments in Didcot.

Richard Otten, Partner and Director of Asset Management at Hearthstone Investment Management, explained: “These latest acquisitions strengthen our presence in well-connected and economically active hubs such as Nottingham, Greater Manchester and Birmingham, and other vibrant locations in southern England. The deals reinforce our ability to source and acquire quality housing assets in areas where tenants can benefit from easy access to their workplace, as well as being part of a strong and well-served local community.”