Heitman Takes First Major Step into UK Build-to-Rent Market

Heitman LLC, the global real estate investment management firm, has announced that it has acquired two sites and entered into an agreement to provide forward funding for two major residential developments in Manchester city centre and Liverpool, in the Baltic Triangle. Heitman, which manages more than 20,000 multifamily units globally, made the investment on behalf of an affiliate of the firm.

Heitman has partnered with Brickland (“Brickland”), a residential developer based in Liverpool, to develop the sites and LIV Group, the leading build-to-rent operator and consultancy, to advise on the development and operate the assets upon completion.

“We are delighted to complete this acquisition in partnership with LIV, a best-in-class operator and the experienced development team at Brickland. The purchase is consistent with our strategy of investing in under supplied sectors, growing urban environments and amenity rich schemes that also provide a sense of community,” said Tony Smedley, Heitman Managing Director and Head of European Private Equity. “The living sectors exhibit an attractive combination of stability and growth with defensive qualities underpinned by their long term secular and structural characteristics. We are actively growing our allocation to these investment themes across Europe.”

The development in Manchester will consist of two towers of 16 and 19 storeys, featuring 363 one- and two-bedroom units along with duplex and townhouse apartments. The property will be constructed around private courtyards and provide green spaces throughout including two rooftop gardens. Co-working space, a library, gym, and resident lounge areas are also key features of the development, which sits close to the Cornbrook Tram stop and offers a high level of connectivity throughout the city and beyond.

The nine-storey development in Liverpool will consist of 200 residential units comprised of one, two, and three-bedroom units. In addition, the property will have a best-in-class amenity offering in the Baltic Triangle submarket, including a landscaped upper floor terrace, gym, concierge services and a residential lounge.

Brickland, founded by Liverpool-based CEO Sam Rowlands, is expected to complete both developments in 2020. Rowlands commented: “This is a milestone for build-to-rent in these Northern Powerhouse cities. We are bringing forward exemplar private rental schemes without cutting corners where rents will be affordable to the mass market.”

Graham Bates, CEO at LIV Group said: “We are proud to have worked on the design of these superb developments from an early stage and to have successfully worked with Heitman who are a visionary investment team looking to make a mark in the UK build-to-rent sector.”