Hearthstone Investment Management Ltd

Media centre

Hearthstone Residential Fund 1 Exchanges Contracts In Its Largest Single Deal With A Housebuilder

Date 07th January 2019
Source Hearthstone Investment Management Ltd
Type Press release

• HRF1 to acquire 72 houses from a major national housebuilder
• A second smaller transaction with another major housebuilder brings total to 81 houses for £17.9 million
• Houses across five sites consistent with strategic national allocation

Hearthstone Investment Management Limited, an institutional investment manager specialising in residential property (PRS), has announced its private equity fund, Hearthstone Residential Fund 1 (HRF1), has exchanged contracts for the purchase of 81 houses for a total of £17.9 million from two major housebuilders.

In a significant multi-site deal with a national housebuilder, HRF1 has agreed to purchase 72 two-, three- and four-bedroom houses scheduled to be completed in 2019 for a phased delivery between January and December. The new build homes are located in Exeter (28), Bicester (11), Rugby (9) and Pontefract (24), all towns that are expanding, have good infrastructure and transport connections and strong local economies.

John Coles, Asset Manager, Hearthstone Investment Management commented, “This is the largest deal HRF1 has completed to date with a single housebuilder. The purchase of such a significant number of houses across several sites is consistent with the fund’s regional diversification strategy to the different regions across the UK.”

The phased delivery provides HRF1 with a controlled delivery pipeline of approximately five to ten houses per month stretching throughout 2019.

HRF1 has also agreed to purchase a further nine three-bedroom houses in Ashby-de-la-Zouch from another major national housebuilder.

Richard Otten, Partner & Director of Asset Management, Hearthstone Investment Management explained, “With this latest round of acquisitions, we are now working with a total of six major housebuilders across the UK. It has been a core part of the strategy for HRF1 to work with a small group of housebuilders to establish relationships and source good quality houses in suburban regional areas that offer sustainable employment opportunities.”

HRF1 is advised by Womble Bond Dickinson (UK) LLP.