PATRIZIA AG has completed the forward purchase of a 16 storey, 102-unit build-to-rent residential tower development in west London, United Kingdom, for EUR 45 million (GBP 40.3 million) on behalf of one of its institutional clients, increasing PATRIZIA’s AUM to over EUR 12.7 billion in the residential sector.
Once finished in spring 2021, the 6,800 sqm tower, which is part of the Regency Heights development in Park Royal, will include a mix of high quality one-, two- and three-bedroom apartments across 16 floors. Regency Heights is being developed on the edge of one of London’s biggest regeneration zones. Park Royal benefits from excellent transport links into the city centre via two lines of the London Underground network and its proximity to major roads into central London.
Phil Irons, Head of Transactions for the UK and Ireland at PATRIZIA, said: “There is a big demand imbalance of affordable residential housing which is expected to persist for the foreseeable future, in the UK. Plus, investors are likely to increase their allocations to residential assets, as an attractive substitute for currently low yielding fixed income. In addition, rent collection in the residential sector has remained robust throughout the COVID-19 pandemic and we are confident that this latest investment in London will deliver strong, reliable returns to our investors.
From the very beginning of its company history more than three decades ago, PATRIZIA has been very active in the residential space and is the leading independent manager of residential property in Europe.
Phil Irons commented: “What sets us apart in the residential space is that we operate and manage many residential assets ourselves thanks to our local experts on the ground.”
