Investment Management has bought its first assets for its UK Private Residential Fund.
The properties 鈥� in Leeds and London 鈥� include 270 purpose-built residential units and were bought for 拢25m (鈧�33.4m) and 拢30m, respectively.
The investment manager said it raised 拢120m for its first UK private-rented sector (PRS) property fund.
It is aiming to invest more than 拢500m in the residential market for clients through the fund and other investment vehicles.
Andrew Stanford, UK residential fund manager at LaSalle Investment Management, said: 鈥淭he fund鈥檚 first investments illustrate our commitment to acquiring high-quality build-to-rent assets in markets where we anticipate strong demand.鈥�
It acquired Waterside Apartments in Leeds from CVI Leeds Waterside for 拢25m in an off-market transaction at a 6.7% gross initial yield.
鈥淲aterside Apartments is a rare, large-scale, income-producing asset with ample opportunity to add value through proactive asset management,鈥� Stanford said.
The third phase of London鈥檚 Rathbone Market redevelopment was bought from English Cities Fund through a forward commitment of 拢30m at a 5.2% gross initial yield.
The asset, near east London鈥檚 Canning Town station, is the final stage of Muse Development鈥檚 Rathbone Market regeneration project and is due for completion at the end of this year.
鈥淏y committing to purchase build-to-rent units in Canning Town,鈥� Stanford said, 鈥漺e have bought into a large-scale regeneration project that will see this well-connected area of London transformed physically and economically, making it a highly desirable place to live.鈥�
Speaking at a in London organised by LaSalle last month, Stanford said the company had a 鈥渧isible pipeline of build-to-rent schemes鈥�.
The company last year hired Savills as property manager for its UK portfolio.
While few deals have completed, Stanford said there was now more evidence of engagement by institutional investors as other real estate sectors became over-priced and impenetrable.
