Urban Splash Residential Fund
The Urban Splash Residential Fund is an established owner and operator of PRS schemes across the UK, with an income-producing portfolio of 306 homes and institutional equity commitments totalling £150m. The fund has first-look access over the £1.2bn+ pipeline of its development partner Urban Splash, and uses its industry network to source opportunistic acquisitions from third parties.
We have a dual mission: to deliver consistent investor returns as well as social value to our communities through a market-leading rental experience for our residents.
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 from third parties.
Having raised £150m of equity from institutional and HNW investors, today the fund owns and manages 306 homes across eight different Urban Splash neighbourhoods including in Manchester, Birmingham, Sheffield, Cambridge, Bradford and Bristol. We offer our residents everything from studio apartments to four bedroom town houses, with an average rent of c.£1,000 per month. The fund’s current net asset value is c.£90m, with average occupancy of 98% and a target net return to our investors of 10% per year.
Our ambition? To continue to scale our UK-wide residential portfolio, working closely with the experienced and vertically-integrated property management team to deliver a market-leading rental product for our residents. Through this dual approach, we expect to deliver consistent investor returns, and hope to leave the world a slightly better place in the process.
The fund strategy
The ambition of the Urban Splash Residential Fund is to be the leading owner and operator of thoughtfully designed rental homes across the UK. The strategy is to assemble an institutional-quality rental portfolio in key regional cities through first-look access over Urban Splash’s £1.2bn+ development pipeline, and opportunistic third-party acquisitions.
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 2021 we delivered unlevered net returns to our investors of 9.5%. The income from our portfolio has remained resilient throughout the COVID pandemic thanks to our differentiated homes and integrated property management team, with average occupancy and rent collection of 98%.
The fund has raised £150m of equity commitments; the initial HNW fundraise was oversubscribed with over 60% of existing investors choosing to invest additional capital in the follow on round, and a sovereign institutional investor making a £100m commitment in December 2021.
The team
Investment and Risk Committees
Investment Team
ESG initiatives
As well as compelling financial returns, we strive to deliver positive impact in cities across the UK through our exciting ESG agenda.
This builds on the extensive ESG work that has already been done by Urban Splash over the past 30 years. We strengthen the value of our investments by delivering measurable, verified sustainability, social value and corporate governance actions. We continue to look for ways to engage with and support the communities around our homes, guided by our ESG Strategy which is available here. More information on our latest initiatives can be found below.
News and updates
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 30 years of expertise and industry connections to source third party 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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