New fund launch: The Hearthstone Residential Fund
Hearthstone Investments announces the launch of the Hearthstone Residential Fund
- The Hearthstone Residential Fund provides institutional investors with a further opportunity to invest in the UK private rented housing sector.
- The fund will follow the same investment strategy as Hearthstone’s Residential Funds 1 and 2 which raised a total of £352m and are fully deployed.
- The fund has a semi open-ended structure, offering flexibility for investors to adjust their exposure. Investors will benefit from high environmental and social impact credentials.
- Hearthstone Investments manages a portfolio of over 1,800 homes nationally, a combination of houses and low rise apartment blocks
Thursday, June 29th 2023, London, Hearthstone Investments, a specialist fund manager in UK private rented housing, has announced the launch of its new Hearthstone Residential Fund. The fund provides institutional investors with a further opportunity to invest in the UK private rented housing sector.
The fund has a target initial close of £70million. It will follow the same investment strategy as Hearthstone’s Residential Fund 1, which closed in 2019 with secured equity commitments of just over £200 million, and Hearthstone Residential Fund 2, which closed in 2021, raising £152million.
An important difference is that the new fund has a semi open-ended “evergreen” structure, with opportunities for investors to top-up their holdings or to reduce exposure if their needs change.
As with the two previous funds, it will provide institutional investors with an opportunity to strengthen their environmental and social credentials.
Hearthstone’s homes are aimed at providing groups such as key workers and young families on average incomes with a valuable opportunity to enjoy high-quality, well-maintained homes in attractive locations. Institutional standards of property management can deliver a fairer, more secure and more professional experience for residents than many other private rented homes.
Andrew Smith, Chief Investment Officer of Hearthstone Investments, says: “The launch of Hearthstone Residential Fund provides institutional investors with another valuable opportunity to benefit from the same highly successful strategy of our previous funds. Not only will income be protected and enhanced through active asset management, important ESG criteria will be embedded into the investment process which centres around raising the standards of homes available to residents in the UK’s private rental market."
“Hearthstone’s 10-year track record of investing in and managing a portfolio of over1,800 homes nationally will ensure that the fund benefits from the strongest possible experience and expertise available in today’s private rental sector.”