February 16, 2018
In November 2017, Schroder Real Estate Investment Management launched the Residential Land Partnership (RLP) in association with Palmer Capital with £30m of initial commitments from a Local Authority Pension Fund and Corporate Pension Fund.
Less than three months since first closing, RLP has successfully deployed over 50% of the equity committed into two projects totalling £16.5m. The first acquisition completed at the end of November, comprising 11 acres of freehold land in Shepperton in South West London for £5.95 million from private owners. The site is currently used for light industrial, external storage, residential and waste transfer uses. It is located in a predominantly residential area and has significant potential for residential and healthcare redevelopment.
The second asset successfully exchanged last week, a 20 acre freehold site located in the affluent village of Kings Langley in Hertfordshire. The site comprises 48,000 sq. ft. of B1/B8 buildings, yards, hardstanding, a three bedroom house and open land.
The first two acquisitions both acquired in JV with Angle Property, perfectly reflect the targeted strategy of RLP, allowing investors a unique opportunity to help address the significant undersupply of housing across the UK whilst generating strong returns through the acquisition and repositioning of sites for residential use. Further fund raising for RLP is on-going to hit the target raise of £125 million.
Angle Property Director, James Good, said:
“We are delighted to have completed these purchases, one we acquired off-market. Our plans are to now engage with the local planning authorities and other local stakeholders before bringing forward two high quality residential-led developments that will provide more appropriate uses on these sites.”
Graeme Rutter, Head of Schroder Real Estate Capital Partners commented:
“We are delighted with the deal sourcing capabilities of Palmer Capital and their affiliate companies. The first two deals are expected to deliver returns in excess of the performance objective for RLP. There are further deals in the pipeline and we expect investor commitments to be drawn ahead of the original business plan.”
For further information, please contact:
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Sarah Deutscher Lucy Cotter |
Tel: +44 (0)20 7658 6139 Sarah.Deutscher@schroders.com Tel: +44 (0)20 7658 3365 Lucy.Cotter@schroders.com |