Urban Splash Residential Fund concludes fifth year of trading – raising a further £104m of equity, investing £30m in new acquisitions, and recording a 70% increase in profit
— Acquisitions were made in Manchester city centre, Altrincham, and Cambridge
— Results show a 96% portfolio occupancy at year end
— The fund was established in 2017 and has since achieved annual unlevered investor returns of 8.5% PA
The Urban Splash Residential Fund has released its results for the period ending March 2022, maintaining a strong performance as it continues to develop as an institutional-scale residential portfolio.
The fund invested more than £30m in new acquisitions during the reporting period, taking the portfolio to 252 homes in six UK cities; Manchester, Sheffield, Birmingham, Cambridge, Bristol and Bradford. The portfolio was 96% occupied at year end; as a result of its resilient income stream and consistent rent growth, it has achieved a like-for-like capital uplift of 3.3% and a £892,000 increase in its revaluation reserve.
Fund manager Akeel Malik said: “We are delighted to have successfully completed our fifth year of trading, another period of significant growth for our portfolio. Our appetite for future acquisitions remains and we continue to have additional equity and debt fundraising discussions to assist in our ambition to build an institutional-scale portfolio of design-led rental homes across the UK.”
Other highlights include a profit of £2.2m, a 70% uplift on the £1.3m recorded in 2021. The results also show net asset value growth to £90.3m – more than three times the £25.2m value in its last annual report.
Strengthening its future position, the Urban Splash Residential Fund has already identified an acquisition pipeline of over £1bn through its relationship with regeneration company Urban Splash, as well as other third parties. A sustainability-led strategy will see the fund continue to invest in homes with green credentials, as well as offering initiatives such as 100% green energy as standard and the security of 5-year inflation-linked leases by default.
Akeel concluded: “We will maintain our approach, investing in sustainable and differentiated homes that offer our residents access to great design, in integrated communities, with space indoors and outdoors. I am excited about our next stage of growth, and grateful for the continued support of our investors and advisers.”
The Urban Splash Residential Fund was established in June 2017 to acquire design-led homes in urban regeneration areas across the UK – both through the Urban Splash pipeline and through opportunistic acquisitions from third parties. Having raised £150m of equity from institutional and HNW investors, today the fund owns and manages 252 homes, with a diversified portfolio ranging from studio apartments to four-bedroom town houses andwith an average rent of c.£1,000 per month.
Find out more at urbansplash.co.uk/us-residential-fund.