Tag Archives: Stratford

Aberdeen invests £60m in Stratford PRS tower

Investor Aberdeen Asset Management has bought a 26 storey tower block of 166 let apartments in Stratford, east London. The deal indicates the appetite of long term investors in the private rented sector, and specifically in buying completed, well let developments.

The £60 million deal is part of a commitment from Aberdeen to invest around £500 million in the UK residential market over the next five years. The Stratford block will be held within the group’s Aberdeen Property Trust investment vehicle.

“This is the Fund’s largest investment into the private rented sector and it will provide a strong sustainable income stream to the fund,” said fund manager Gerry Ferguson. “It also helps with further risk reduction which has been one of the hallmarks of the Trust over the ten years which we’ve been managing it, and we anticipate adding more high quality private rented properties in the future.”

The block, originally part of a project named Athena, has an unusual history. It was due to be completed for the 2012 Olympics, before financial problems hit its backers. Only recently has it been completed.

Owned by Aberdeen: 180 Stratford

Owned by Aberdeen: 180 Stratford

Aberdeen already manages around £1.2 billion of residential assets, outside the UK, of which half are still being developed. Ed Crockett, property fund manager, said the investor has a large appetite: “This purchase is part of a wider commitment which Aberdeen has to the private rental sector. The property is in one of the most vibrant and affordable locations in London. The city’s population is growing at a rate most would associate more with an emerging market than a developed one, which is one reason that private residential units are an attractive investment for us.”

“Long term asset managers like Aberdeen are ideal landlords for private residential tenants. They bring the full weight of their experience managing real estates assets to bear on the growing private residential sector, and combine it with the professionalism which our own clients demand.”

Russell Chaplin, Aberdeen’s chief investment officer for property, added: “This is the latest in a line of private residential purchases which Aberdeen has made across Europe on behalf of its clients. The case for the sector to grow, particularly in Europe’s winning cities, is clear with the number of people predicted to rent property set to increase over the coming years. We believe there is plenty of opportunity to grow the amount of assets we own in the years to come.”

The block at 180 Stratford High Street is part of a larger scheme originally named Athena and started by the Irish McFeely group. The developer went bust before the Olympics in 2012, leaving the scheme incomplete. More recently, investor Long Harbour bought the building, completed the development and rebranded it, before letting all the flats over a four month period.

Long Harbour is an asset manager that has around £600 million of money invested across a range of property and infrastructure assets. The company called the deal “part of the natural turnover of Long Harbour’s PRS portfolio” and said it would be investing further in the private rented sector.

East Village fits the bill for London’s younger renters

Almost two thirds of renters at East Village, are under 30, as London’s former Olympic village provides private rented homes for the capital’s bright young things.

The demographic breakdown of the residents at East Village was revealed as the two year anniversary of the start of the 2012 Olympics approaches in the next few days. In the time since the world watched the global sporting event at Stratford, the area has been transformed, with a new public park, sporting facilities now open to the public, and a growing new neighbourhood where around 2,500 people now live.

Derek Gorman, chief executive of landlord Get Living London, which is developing and managing East Village, revealed the split of tenants by age and source, in an interview with the Standard newspaper’s Peter Bill.

East Village, Stratford

The area is clearly appealing to a younger demographic. Residents under 25 account for 31% of East Village residents, while those 25-30 account for a further 31%. The 30-40 year olds represent 25% of the total, leaving just 13% of tenants aged 40 or older.

Taking a look at the source of renters arriving in East Village, two thirds have moved from elsewhere in the capital, while just 3% arrive straight from overseas. It is not clear why those local movers are choosing East Village, though the opportunity to rent direct from a landlord that provides inclusive rental contracts, proactive maintenance and a pleasant, well-managed environment may have something to do with their decisions.

Currently, Get Living London manages 1,400 private rented homes at East Village, and the next phase, a pair of towers containing 448 more homes, will shortly go before planners for pre-construction approval.

Olympic Park opens with rental homes on its perimeter

The Queen Elizabeth Olympic Park in Stratford has opened this weekend – and it’s the ideal backyard for sporty renters……

Queen Elizabeth Olympic Park

Queen Elizabeth Olympic Park

The park opens onto Get Living London’s new rental apartments in the former Olympic village, and gives local residents and visitors access to the park and to sports facilities including the Olympic swimming pool.

“With the Olympic Park reopening, this is a unique chance for renters to move to a quality new home with world-class sports and leisure facilities on their doorstep,” said Get Living London’s chief executive Derek Gorman.

Prices at East Village start at £310 per week for a one bed apartment, with four bed townhouses from £550 a week – more details here.