A prominent build-to-rent development featuring more than 300 apartments in Leeds has been acquired in a £41 million deal. Clients of Aberdeen Standard Investments have acquired Clarendon Quarter, a 324-unit residential scheme situated just outside of the city centre, from Habitus Leeds.
The build-to-rent scheme comprises the former St Michaels School (The Court) and a new build block (The Gardens). It provides studio, one-, two- and three-bedroom units, including 262 apartments designated for key workers.
Amenity spaces including two residents’ lounges, a residents’ gym, cinema room, co-working areas, laundry facilities, communal landscaped gardens and roof terrace are also provided.
“We’re delighted to complete the purchase of this well designed and well managed scheme in a dynamic and growing market. As the first purpose-built rental scheme in Leeds it has a strong emphasis on operational design and displays all of the investment characteristics we target – affordability, accessibility and amenity,” commented Ed Crockett, head of UK residential investment at Aberdeen Standard Investments.
“The potential for rising unemployment is undoubtedly a challenge the sector will have to navigate and as a result our strategy has pivoted more towards the affordable end of the BTR market which shows strong risk adjusted performance as well as helping to meet the needs of the wider community.”
Knight Frank advised Aberdeen Standard Investments, with JLL advising on operational matters. CBRE represented Habitus Leeds on this transaction. The scheme is managed by Fresh Property Group.
“This transaction is a continued endorsement for the BTR sector, which shows outstanding resilience in the current climate, demonstrating the ongoing demand for institutional, residential assets. Despite the ongoing market headwinds, occupancy and rent collection remained at high levels at Clarendon Quarter, throughout the acquisition process. The purchase is reflective of the appetite from investors for assets with proven strength of income and social benefits,” added Adam Burney, partner, residential capital markets at Knight Frank.