Gatehouse partners TPG in £500m Build to Rent joint venture

This is the Shariah-compliant bank’s third Build to Rent venture, this time with the real estate equity investment platform of global alternative asset firm TPG, as it aims to become one of the UK’s largest providers of purpose built single-family rental homes.

Paul Stockwell, Gatehouse Bank’s chief commercial officer, said: “We are delighted to have found an experienced, institutional partner in TREP as we launch our third major private rental investment initiative. This joint venture will see significant capital being deployed to build and develop the next generation of build-to-rent housing, concentrating on high-quality family homes in suburban locations.”

The plans include an initial seed portfolio of four sites, acquired in partnership with leading housebuilder Countryside Properties, which specialises in mixed tenure and regeneration projects.

The plans include 321 single family homes, in established residential communities in the Midlands, Greater Manchester and Merseyside.

With equity to drawn down, the venture will seek to strengthen existing partnerships, and develop new relationships with other housebuilders across the UK to forward-fund developments of 2,500 rental homes for families.

James Piper, partner at TREP, said: “We are pleased to be partnering in this joint venture with Gatehouse, a skilled operator in the UK’s build-to-rent market. TREP has a strong track record of developing and owning high-quality private rental assets in North America and we are excited to leverage this expertise to achieve similar success in the UK, where there is strong and growing demand for new-build rental homes. With this initiative, we aim to be a valued partner not only to homebuilders but also the communities and families that will call these properties home.”

Gatehouse Bank achieved a ground-breaking sale of its first portfolio, Thistle, in January to an institutional investor for a total consideration of around £150m.