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USR invests £25.8m into MMC homes

written by Bella Palmer

USR’s portfolio will increase to 240 homes across the country following the investment

The Urban Splash Residential Fund (USR) has announced a £25.8m deal to acquire homes created using modern methods of construction (MMC).

Properties include £11.6m of houses and apartments at New Islington — a £300m redevelopment being undertaken by House by Urban Splash in Manchester.

The fund is also looking at opportunities to explore a new rental model at Port Loop being created by the same developer in Birmingham.

USR is also focusing on investing in homes with green credentials, something it has achieved with these homes. This includes Mansion House apartments, a cutting-edge new building created using sustainable cross laminated timber.

USR’s portfolio will increase to 240 homes across the country following the investment.

We are delighted to have expanded our portfolio once more, with a high-quality range of homes in growing urban communities, said USR fund manager, Akeel Malik.

We are acutely aware of what investors, and ultimately renters, want from modern homes, and we have great confidence in the calibre of House by Urban Splash properties which are cutting edge, sustainable, and appealing to so many different residents, he said.

Akeel added that the portfolio is the perfect proposition for investors due to its great green credentials, bar-raising design, and the appeal of the broader neighbourhood.

The fund has also signed a memorandum of understanding with House by Urban Splash, meaning it has first access to its pipeline of £800m of homes currently being created by the housebuilder.

Simon Gawthorpe, CEO at House by Urban Splash, commented: We are delighted to complete this deal; it is part of our long-term strategy to provide houses for sale, as well as homes for affordable and market rent to create great mixed communities.

We are looking forward to working with USR on future sites, including the new town of Northstowe in Cambridgeshire, Grappenhall Woods in Warrington, and the ongoing regeneration of New Islington and Port Loop, he said.

USR provides investors with the opportunity to invest alongside the developer to build a branded portfolio of UK PRS properties.

Its chair, John Forbes, stated: I have been delighted with the rapid progress that USR has made, and I have enjoyed working with the fund’s management team and House by Urban Splash to develop this into a market-leading residential fund.

He said the initial seed portfolio has now grown to £40m, with annual returns to date consistently exceeding our 10% target.


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