LONDON, July 14, 2022 /CNW/ - Alberta Investment Management Corporation, ("AIMCo"), on behalf of certain of its clients, and Ridgeback Group ("Ridgeback") have acquired a portfolio of UK build-to-rent ("BTR") assets from Angelo Gordon for a price of £283 million.
The transaction, which nearly doubles the size of AIMCo and Ridgeback's UK BTR portfolio, places the joint venture among the largest UK BTR landlords, providing the opportunity to realise significant growth anticipated from this segment of the real estate market.
Anchor Works Cardiff (CNW Group/Alberta Investment Management Corporation)
Machine Store Hayes (CNW Group/Alberta Investment Management Corporation)
AIMCo and Ridgeback commenced their portfolio aggregation strategy in the second quarter of 2020 with the acquisition of five properties, totalling more than 1,650 apartments under construction in cities including Manchester, Birmingham, Leeds and Liverpool. With the addition of these most recently acquired properties, AIMCo's UK BTR portfolio now comprises ten city centre assets, with over 3,100 units.
The five properties acquired from Angelo Gordon are located in gateway cities throughout the UK – Cardiff, Birmingham, Sheffield – and include two assets in Greater London – Hayes and the Isle of Dogs. The properties are at different stages of the construction process, ranging from Sherborne Wharf in Birmingham, which is up and let, through to Isle of Dogs, London, which is still in the planning stage. When construction is completed, the portfolio will consist of 1,452 apartments.
Rupert Wingfield, Head of European Real Estate at AIMCo, commented: "We are very pleased to be scaling up our UK build-to-rent joint venture with the acquisition of these five assets, which complement our existing portfolio in the sector. We are committed to delivering high quality, amenitised accommodation in which our residents can live, work and play whilst limiting the impact on the environment. From an investment perspective, we particularly like the inflation protection attributes of the BTR sector in the current economic climate."
George Bossom, Partner of Ridgeback Group, commented: "We are delighted to be continuing our long-term, strategic partnership with AIMCo. This investment further enhances our portfolio of best-in-class BTR assets across the UK and is a strong endorsement of our fully integrated capabilities. We believe the UK BTR sector continues to demonstrate the strength of its underlying fundamentals as demand for high quality homes in the UK continues to grow."
Mike Diana, Managing Director, Europe Real Estate at Angelo Gordon, commented: "We are pleased to realise our initial vision for this BTR portfolio, from working with Ridgeback since their inception through to completing this sale to a long-term owner in AIMCo. We believe the opportunity set in the residential sector in the UK remains highly compelling and, moving forward, expect the asset class will continue to be an area where we deploy substantial capital."
ABOUT
ALBERTA INVESTMENT MANAGEMENT CORPORATION
AIMCo is one of Canada's largest and most diversified institutional investment managers with $168.3 billion of assets under management as at December 31, 2021. AIMCo was established on January 1, 2008, with a mandate to provide superior long-term investment results for its clients. AIMCo operates at arms-length from the Government of Alberta and invests globally on behalf of 32 pension, endowment, and government funds in the Province of Alberta.
For more information on AIMCo please visit www.aimco.ca or follow us on LinkedIn.
ABOUT RIDGEBACK GROUP
Ridgeback Group is a fully integrated investor, developer and operator with a UK Build-to-Rent residential portfolio of over 3,900 homes with a GDV in excess of £1.3 billion.
ABOUT ANGELO GORDON
Angelo Gordon is a privately held alternative investment firm founded in November 1988. The firm currently manages approximately $50 billion with a primary focus on credit and real estate strategies. Angelo Gordon has over 600 employees, including more than 200 investment professionals, and is headquartered in New York, with associated offices elsewhere in the U.S., Europe, and Asia. For more information, visit www.angelogordon.com.
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