Urban Splash Residential Fund acquires in Leeds
The business has invested £15m in off-market acquisitions, purchasing more than 100 occupied homes at East Street Mills in Leeds, along with homes in Manchester.
These new homes increase the number of homes in the USRF portfolio by 41% to 437 homes, and add £1.3m of income to the rent roll.
The acquisitions come just weeks after the fund announced the signing of a £20m revolving credit facility with Barclays, increasing total capital to around £160m.
Fund manager Akeel Malik said: “2023 has been a significant year of growth for us; we are moving forward with acquisitions and offering more people the chance to live in brilliantly designed homes in cities across the country. We are focusing on off-market higher yielding acquisitions in the current macroeconomic environment, whilst preserving rent-to-income levels of less than 30% for our residents (currently 22%)”.
The East Street Mills buy covers 112 studio, one- and two-bedroom apartments at the grade two-listed former textile mill, close to The Calls and Royal Armouries. Homes at the development have been restored with original features such as exposed brickwork, cast iron pillars, original roof timbers and feature windows retained.
The Manchester acquisitions include terraced homes at Chimney Pot Park in Salford, and apartments at 3Towers in Manchester, both schemes originally developed by Urban Splash, with which the fund has identified a long-term pipeline of 4,500 new homes, having already acquired key sites from the developer’s past schemes.
Malik continued: “Our comprehensive offering now reaches prospective tenants across the country, with homes in Manchester, Altrincham, Birmingham, Sheffield, Bristol, Cambridge, Bradford and now Leeds.
“Our portfolio of differentiated homes is well positioned for modern living with flexible, spacious interiors, access to outdoor spaces and strong connectivity. We remain committed to offering residents well-designed mid-market homes, at rental levels that preserve an average rent-to-income ratio of <30%.”
The USRF has now partnered with a community platform called Ark which offers a resident app with access to discounts from local businesses.
Gorvins acted on behalf of the fund, with Pinsent Masons representing the vendors.