BauMont Real Estate Capital (BauMont) has completed its maiden investment in the UK with the purchase of a residential portfolio from a private family office for around £37 mln (€42 mln).
The portfolio, which was bought on behalf of BauMont Real Estate One SCSp (BREO) and in joint venture with operating partner Addington Capital, includes 182 apartments of mostly converted Victorian and Edwardian houses in South London let on assured shorthold tenancies.
The residential portfolio consists of 35 freehold buildings comprising 182 apartments. The majority are located in well-connected South London locations popular with commuters with a remainder mainly in prime North West London locations. Addington's sister company AddLiving, the residential management and leasing business, will provide property management services.
Natalie Harrison, UK investment director at BauMont, said: 'Given its characteristics, the portfolio will be resilient and offer well-located, good quality affordable homes in an undersupplied segment of the market.'
Matthew Allen, principal of Addington Capital added: 'We continually look for value-add opportunities in the sector and have recently been focused on the Greater London residential market, which has been subdued for many years but offers strong fundamentals. This portfolio offers opportunities through the refurbishment of the existing stock and new development. We are delighted to be working with the BauMont team.'
CBRE advised the vendor and Knight Frank advised the purchaser.
BauMont is an independent real estate private equity firm founded in 2017 by Robert Balick, Frédéric Laurent, Serge Maton and Eric Salmon to invest in value creation and arbitrage opportunities across Western Europe. BREO held its final close in March 2019 and has an investment capacity of more than €900 mln with 65% leverage.