Urban Splash Fund Management
Urban Splash has a proven track record managing assets and co-investments with third parties including c.800 residential apartments with Places for People and a £100m commercial workspace portfolio with Pears Property. Our latest venture is the Urban Splash Residential Fund.
The 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.
Today the fund owns and manages 160 homes across six different Urban Splash neighbourhoods including in Bradford, Sheffield, Manchester, Birmingham and Bristol. We offer our residents everything from studio apartments to 4 bedroom town houses, with an average rent of less than £800 per month. The value of the current portfolio is c.£23m, with average occupancy of 95% and a target net return to our investors of 10% per year.
Our ambition? To keep on growing, creating an institutional quality, uk-wide residential portfolio of real scale; one which is vertically integrated, with an experienced residential management team – and we hope to leave the world a slightly better place in the process.
The fund strategy
The Urban Splash Residential Fund strategy is to hold the majority of homes for rental income, and crystallise capital growth through a limited amount of individual sales.
We have a target annual 10% net return including a 3% per annum dividend distribution. The fund does not take development risk and will be low leverage (currently no debt); in the 12 months to 31st March 2020 we delivered returns to our investors of c.12%.
The initial fundraise was from high-net-worth professional individuals, and was oversubscribed. Current investors include a number of private equity partners, real estate professionals and experienced investors. The income from our portfolio has been really resilient with occupancy increasing during lockdown, and we recently did a successful follow-on investment round, with over 60% of existing investors choosing to invest additional capital into the fund.
As well as the identified pipeline from Urban Splash, we also believe that there may well be some attractive acquisition opportunities in the coming months, and will be looking to apply our 27 years of expertise and industry connections to source deals and add value. For details of these and other homes currently available to rent click here.
For further information please contact akeelmalik@urbansplash.co.uk.
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