October 9, 2024 12:50 pm

Insert Lead Generation
Nikka Sulton

Royal London Asset Management Property has announced its entry into the Build to Rent sector with the acquisition of 500 flats situated in Bracknell and Slough. This marks a significant milestone for the company as it diversifies its investment portfolio into this growing market. The properties are expected to contribute to the increasing demand for high-quality rental accommodation in the region.

To manage these flats, Royal London has established ProperTies Living, a newly launched residential property management platform. This initiative is designed to provide a tailored approach to property management, ensuring that residents receive a high level of service. The establishment of ProperTies Living underscores the firm’s commitment to creating a positive living experience for tenants in their new homes.

With the creation of ProperTies Living, Royal London Asset Management Property aims to maintain full control over all operational aspects of the properties. This hands-on management approach will allow the company to implement its standards and ensure that the flats are well-maintained and responsive to tenant needs. By having direct oversight, Royal London can quickly adapt to market trends and customer feedback, enhancing the overall rental experience.

As part of the UK’s largest mutual life, pensions, and investment company, Royal London Asset Management Property is well-positioned to leverage its resources and expertise in this new venture. The company’s entry into the Build to Rent sector reflects a strategic decision to meet the growing demand for rental properties while also providing an opportunity for long-term growth in a competitive real estate market. This move is expected to strengthen their portfolio and provide sustainable returns for their stakeholders.

Royal London Asset Management Property is setting its sights on an ambitious portfolio of 8,000 Build to Rent (BTR) units. The company has identified suburban and commuter markets as key areas for investment, specifically targeting what it describes as “the UK’s largest cities, mid-sized regional cities, and district centres.” This strategic focus reflects a growing recognition of the demand for quality rental housing in locations that offer convenient access to urban amenities.

The decision to prioritise suburban and commuter areas aligns with recent trends in housing preferences, where many individuals and families are seeking more space and a better quality of life away from densely populated city centres. By investing in these areas, Royal London aims to cater to the evolving needs of renters who are increasingly valuing accessibility, affordability, and lifestyle amenities.

While the initial phase of their investment strategy has concentrated on blocks of flats, Royal London has plans to diversify its portfolio further. The intention is to expand beyond multi-family units to include family housing, thereby addressing a broader segment of the rental market. This move signifies the company’s commitment to meeting the diverse needs of renters in various demographics.

The first acquisitions under this new strategy include a significant site with 349 flats located in Bracknell, along with another building that contains 151 flats in Slough. These properties represent the initial steps in Royal London’s journey into the BTR sector and are expected to lay the groundwork for future developments.

As the company continues to grow its presence in the Build to Rent market, it is well-positioned to respond to the changing landscape of rental housing in the UK. The focus on quality developments in desirable locations not only aligns with current market trends but also aims to provide tenants with modern living options that enhance their overall rental experience.

Aspire is a nine-storey apartment building located on Herschel Street in Slough, which was completed in spring 2024. Situated near the high street and railway station, the development boasts EPC ratings of B and higher. It incorporates sustainable design features, including electric heating, air source heat pump hot water systems, LED lighting, and electric vehicle (EV) charging points.

Meanwhile, The Beeches, located near the centre of Bracknell, is set to be finished in the second quarter of 2027. This development will consist of 349 residential units distributed across seven blocks, with heights ranging from four to 16 storeys. Residents will have access to various amenities, including a 24/7 concierge service, a gym, amenity spaces, work-from-home areas, and a lounge, all within a landscaped estate.

To improve construction efficiency, The Beeches will utilise an offsite-manufactured panel wall system. The project aims to achieve EPC ratings of A and B, as well as BREEAM Excellent certification, demonstrating a commitment to sustainability and energy efficiency.

A representative from Royal London Asset Management Property stated, “Our goal is to generate long-term income for our pension customers by investing in resilient and future-proof assets across various sectors. As the Build-to-Rent market continues to strengthen and the demand for high-quality homes in UK cities increases, this is the right time for us to enter this sector.

“The establishment of ProperTies Living, our vertically integrated residential management business, is a key part of our entry into the residential market. In line with our commitment to responsible investment, this new venture will allow us to engage more closely with our tenants, understand their needs, and ensure that our offerings maintain a high standard of living for future generations.”

 

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