alternative investment business has acquired 73 newly built residential apartments in West London for its latest European value-add direct real estate fund.
Alternative Advisors (PAA) made the acquisition on behalf of the Elevation II fund at a purchase price believed to be close to 拢30m (鈧�34.8m), according to industry sources.
This transaction, made by PAA in a joint venture with Pinnacle Investments, marks the maiden acquisition for the manager鈥檚 Elevation II fund.
Elevation II is the second iteration of Pictet鈥檚 value-add Elevation I fund for which it raised 鈧�700m in 2020 at final close.
Located in Lampton Park in Hounslow, the 73-unit asset for Elevation II comprises more than 50,000sqft spread across two connected blocks in a multi-phase regeneration scheme.
While London鈥檚 residential market has withstood recent macro shocks, the lack of professional landlords within the rental sector and declining house price affordability have created a significant imbalance between the supply and demand of rental properties, Pictet said.
Ed Jackson, head of UK direct real estate at PAA, said: 鈥淭oday more than 20% of UK households rent their main home compared with below 10% in 1995. This swing from ownership to rental coincides with a structural shortage of professionally-run multifamily developments in the UK.
鈥漁ur strategy seeks to address this imbalance and provide Londoners with affordable, energy efficient and well-located homes. With this transaction, and further acquisitions as part of this strategy, we are aiming to create a portfolio of institutional quality and size in one of Europe鈥檚 strongest investment markets.鈥�
PAA鈥檚 investment strategy aims to ease the supply/demand disparity in the London residential market and provide tenants with high-quality, energy efficient homes in well located neighbourhoods with strong transport links.
PAA intends to 鈥榞reenify鈥� the assets through initiatives such as fitting solar panels and the installation of further EV charging points, and will play an active role in initiating a range of tenant support and community initiatives, the manager added.
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