Key Takeaways
- • The UK's National Housing Bank committed £70m to the Fiera Real Estate Single-Family Housing (FRESH) fund, run by Fiera Real Estate UK and Packaged Living, bringing total FRESH commitments to £200m.
- • The investment is the bank's third single-family build-to-rent commitment, following Aviva (March, £100m suburban partnership) and Long Harbour (July, £100m equity).
- • FRESH is targeting a £1bn portfolio of family rental homes in "supply-constrained" UK locations, investing via forward-funding and forward-commitment agreements with developers and house builders.
- • The National Housing Bank, a Homes England subsidiary, plans to invest up to £16bn over a decade and aims to crowd in £50bn of private capital.
Summary
The UK government's National Housing Bank has committed £70m to the Fiera Real Estate Single-Family Housing (FRESH) fund, according to Inside Housing Living. The investment is the third single-family build-to-rent (BTR) commitment the bank has announced this year, following deals with Aviva and Long Harbour, and it lifts total commitments to the FRESH fund to £200m.
FRESH was established in August by Fiera, a Canadian asset manager, and Packaged Living, Fiera's European rental living arm. The fund is targeting a £1bn portfolio of family rental homes across "supply-constrained" UK locations. It will invest through forward-funding and forward-commitment agreements with developers and house builders. In August, Fiera recruited Mike Weston, former chief executive of the LGPS Central pension pool, as strategic advisor for its single-family strategy.
The National Housing Bank, launched in March and a subsidiary of Homes England, will invest up to £16bn in housing delivery and regeneration over the next decade through debt, equity and guarantees. Its stated aim is to crowd in £50bn of private capital. Its first investment was a £100m suburban partnership with Aviva and developer Place Group Capital to build 3,300 homes, including an initial 300 single-family homes in Liverpool and Manchester aimed at "working families". In July, the bank backed Long Harbour's single-family housing fund with a £100m equity commitment.
Simon Century, chief executive of the National Housing Bank, said the investment demonstrates the bank's role in attracting institutional capital into housing delivery. Charles Allen, head of European real estate at Fiera Real Estate, described the commitment as "a strong validation" of the firm's investment thesis and its joint track record with Packaged Living. Ed Ellerington, chief executive of Packaged Living, said the collaboration shows how private and public capital can accelerate housing delivery.
Fiera's European real estate business has £2.6bn of assets under management, with living as one of three core focus areas alongside real estate debt and logistics. Its living pipeline stands at 12,500 homes. Packaged Living, which is developing and operating 4,000 homes, recently acquired BTR management company Apo Group and will absorb management contracts for 1,000 third-party homes across Liverpool, Manchester and London.
FRESH was established in August by Fiera, a Canadian asset manager, and Packaged Living, Fiera's European rental living arm. The fund is targeting a £1bn portfolio of family rental homes across "supply-constrained" UK locations. It will invest through forward-funding and forward-commitment agreements with developers and house builders. In August, Fiera recruited Mike Weston, former chief executive of the LGPS Central pension pool, as strategic advisor for its single-family strategy.
The National Housing Bank, launched in March and a subsidiary of Homes England, will invest up to £16bn in housing delivery and regeneration over the next decade through debt, equity and guarantees. Its stated aim is to crowd in £50bn of private capital. Its first investment was a £100m suburban partnership with Aviva and developer Place Group Capital to build 3,300 homes, including an initial 300 single-family homes in Liverpool and Manchester aimed at "working families". In July, the bank backed Long Harbour's single-family housing fund with a £100m equity commitment.
Simon Century, chief executive of the National Housing Bank, said the investment demonstrates the bank's role in attracting institutional capital into housing delivery. Charles Allen, head of European real estate at Fiera Real Estate, described the commitment as "a strong validation" of the firm's investment thesis and its joint track record with Packaged Living. Ed Ellerington, chief executive of Packaged Living, said the collaboration shows how private and public capital can accelerate housing delivery.
Fiera's European real estate business has £2.6bn of assets under management, with living as one of three core focus areas alongside real estate debt and logistics. Its living pipeline stands at 12,500 homes. Packaged Living, which is developing and operating 4,000 homes, recently acquired BTR management company Apo Group and will absorb management contracts for 1,000 third-party homes across Liverpool, Manchester and London.
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