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KKR and Apache allocate £610m to UK multi family

Investment firm KKR and residential specialist Apache Capital are to jointly invest £610m of equity to develop multi-family apartments for rent in core cities across the UK.

The collaboration will deliver over 4,000 high quality rental homes which are expected to have a gross development value of £1.7bn. The properties will be developed and operated by UK residential-for-rent property developer Moda Living.

The JV is planning BTR projects in core cities across the UK and said sites have already been identified in Birmingham, Brighton, and London.

The Lexington, Liverpool.

KKR’s investment is being made on behalf of the $2.2 billion fund KKR Real Estate Europe Partners Europe II, which is dedicated to value add and opportunistic real estate investments in Western Europe.

John Dunkerley, CEO and co-founder of Apache Capital said the deal, “demonstrates the growing maturity of the UK build-to-rent sector, which continues to attract global institutional capital thanks to its favourable demand-supply dynamics and defensive, counter-cyclical characteristics”.

The joint venture between Apache Capital and KKR follows a collaboration between Apache Capital and Moda to create a multifamily BTR scheme, Moda, The Lexington, in Liverpool, (pictured, left) where 60% of the apartments were leased two months after launch.