Lloyds Living has undertaken a significant expansion by acquiring 821 homes in the North West and Midlands, increasing its portfolio to 5,000 properties.
This substantial acquisition underscores Lloyds Bank’s strategic focus on the build-to-rent sector, demonstrating its commitment to providing quality housing solutions across the UK.
Expansion in the Build-to-Rent Market
Lloyds Living, previously Citra Living, has successfully acquired a total of 821 single-family homes and apartments. This acquisition reflects the bank’s ambitious steps in the build-to-rent (BTR) market, with properties located across Greater Manchester, Merseyside, and the West Midlands. Initiating a stronger presence in these regions, Lloyds is poised to address the increasing demand for rental properties that offer stability and quality living environments.
Details of the Acquisition
The 821 homes were purchased from a joint venture involving Sigma Capital Group and Gatehouse Living Group. This investment was facilitated through The UK Private Rented Fund, launched by Sigma with significant backing from a leading sovereign wealth fund and Gatehouse Bank.
The portfolio includes a mix of two, three, and four-bedroom houses. Additionally, it comprises 72 low-rise apartments, each designed to meet the high demand for rental space tailored to diverse family needs.
High Occupancy Rates and Tenant Benefits
Occupancy rates for the newly acquired properties stand at an impressive 99%, showcasing the desirability and demand in these areas.
Residents benefit not only from quality housing but also from excellent access to local amenities. The homes boast energy performance certificate (EPC) ratings of B or higher, ensuring energy efficiency and lower utility costs.
These properties also provide comfortable living spaces with modern amenities, catering to both young families and professionals seeking long-term rental options in well-connected locations.
Historical Context and Previous Transactions
This acquisition follows the 2021 sale of the Thistle Portfolio, a landmark in the BTR single-family housing market, also orchestrated by Sigma and Gatehouse.
Graham Barnet, CEO of Sigma Capital, expressed pride in managing robust BTR schemes, highlighting the significant role these developments play in providing stable, well-maintained rental homes.
Such transactions mark a pivotal point for the housing market, emphasizing the enduring appeal and financial viability of BTR schemes for both investors and residents.
Partnerships and Strategic Development
Paul Stockwell of Gatehouse Living Group highlighted this portfolio’s unique creation in partnership with a sovereign wealth fund. The partnership reflects the group’s capability in establishing stable, benchmark-setting real estate ventures.
This platform is part of a broader approach that integrates investment, asset, and property management to deliver substantial returns and quality housing.
The continuity of property management with Ascend, a leading third-party operator, is a testament to effective strategic delivery in the housing sector.
Role of Advisors and Consultancy
The acquisition was also supported by various consultancy and advisory firms such as Eversheds Sutherland for legal guidance, and Savills for acquisition expertise.
CBRE, along with Savills, provided critical valuation and technical advice, facilitating informed decisions throughout the acquisition process.
These advisors played a pivotal role in structuring the deal to align with regulatory frameworks and optimise financial outcomes.
Implications for the UK Housing Market
The expansion of Lloyds Living’s portfolio signifies a major development in the private rental sector, setting the stage for future growth.
This move underscores the increasing importance of build-to-rent as a sustainable and attractive housing model.
It highlights a trend towards professionally managed rental options, offering residents enhanced security and quality, while supporting community development and economic stability.
Lloyds Living’s strategic acquisition not only enhances its property portfolio but also reinforces its role as a key player in the UK’s build-to-rent market. With expert management and strong partnerships, the entity is well-positioned to meet the growing rental demand.
