Europa Capital and its partner Addington have completed the acquisition of a £55 mln (€62 mln) portfolio of residential properties in London.
The package, which was acquired through Europa Capital’s Fund V, consists of mostly Victorian and Edwardian houses and apartment conversions in London and was acquired from private clients of Allsop.
The investment is the third acquisition for the London Affordable Residential platform, which was established to invest primarily in undersupplied London markets where it sees the opportunity to enhance income and add value through actively managing assets.
The newly acquired portfolio totals 202 assets including 43 houses and 153 flats. The properties are predominantly freehold, with a mixture of residential tenancy types including assured shorthold tenancies (ASTs) and regulated tenancies.
Hugo Black, partner at Europa Capital commented, 'This acquisition further boosts our London Affordable Residential platform with Addington where we are sourcing well-located homes or residential projects that offer value- creation opportunities and will be delivered into London’s undersupplied residential market. This is our 8th joint venture with Addington and supports our continued drive to invest in the sector.'
Matthew Allen, principal of Addington Capital said, 'Addington continually looks for value-add opportunities in the sector. The second-hand housing market in London is already four years into a price correction. The characteristics of this portfolio: the age, location and type of stock, we think will be resilient in today’s market and offer prospects for an early recovery as we move through the housing cycle.'
Europa Capital was an early institutional mover into residential investment and has invested in or developed over 7,000 bed spaces in PRS and student accommodation in key UK and Continental European locations since 2012.
For Addington, the portfolio will complement its existing residential and PRS portfolio, which it plans to further expand. The owners of the firm recently recruited Erdal Kacar to head its ADDLiving business, its management and leasing platform for residential property.
Addington has acquired over 2,000 residential properties with its partners over the past six years.
Tim Theakston of Allsop advised the vendor.