Goldman grows UK resi-for-rent stake in Urban & Civic deal

Urban & Civic, the Wellcome Trust-owned developer, has signed a three-year framework agreement to build new homes for rent across its portfolio of large-scale strategic sites on behalf of Goldman Sachs’ real estate business.

The first project will be at Houlton, Rugby, where 149 homes for rent will be built.

Goldman Sachs Asset Management, which will partner with residential specialist Pitmore, will oversee the development and management of the houses, which will predominantly be built for single families.

Deal will initially add 700 homes to Goldman Sachs’ portfolio

The framework with Urban & Civic gives Goldman Sachs the ability to acquire homes to let at market rents in key strategic locations and will initially expand its portfolio by 700 properties. The deal further expands Goldman Sachs’ presence in the UK single family rental market following the recent acquisition of 918 units across 15 sites from Gatehouse Bank.

Urban & Civic, has scope for 37,000 homes – some with consent, others with planning applied for – on eight sites with a further six sites in the planning pipeline. The company said it will identify and allocate parcels of land suitable for market-rent homes within its projects, alongside homes for sale and affordable homes. The project at Houlton is a joint venture with Aviva Investors.

“We believe that high quality, new rental homes are an undersupplied segment in the UK housing market,” commented Chris Semones, managing director in the real estate business within Goldman Sachs Asset Management. “We look forward to partnering with Urban & Civic and Pitmore to deliver homes that provide families with well-priced, well-managed and high quality living spaces.”