Inspired Asset Management, the parent company of Inspired Homes, has appointed Lacey Capital Partners to source a Build to Rent (BTR) funding partner.
Lacey Capital Partners have been asked to secure funding for an initial six assets comprising 835 units with a combined GDV of circa £175m. These assets are either already under construction or will be by Q4 2018 and include a mixture of Co-Living studios, micro-apartments and standard-sized PRS (private-rented sector) apartments located in the South East, Midlands and North West. There is also a potential pipeline of circa 1,000 units which can be added to the portfolio over the next few years.
Inspired’s BTR strategy is to reposition existing income producing and vacant buildings, such as older student blocks, hostels and offices, and introduce new development as the portfolio becomes more established. We will continue to focus on Micro-Living schemes including Compact Living (self-contained smaller homes), Shared Living (house/ flat shares) and Co-Living (managed purpose-built developments with shared amenity space).
Inspired’s Founder and Chief Executive, Martin Skinner, has long been an advocate of Micro-Living appearing in an ITV London News feature on micro-apartments last year and recently helping the BPF to come up with new industry-recognised definitions. He was also Non-Executive Chairman of Co-Living specialist The Collective between 2010 and 2013.
We purchased our debut Co-Living scheme in June, a development in Wolverhampton comprising 294 studios with shared social spaces.
Commenting, Martin Skinner said: “We have proven that Micro-Living schemes can deliver the higher yields demanded by institutional investors whilst providing high quality rental accommodation that is affordable. Investment activity in student accommodation has increased significantly over the last 10 years, but the market has reached saturation in many locations. There remains huge demand from non-students for professionally managed accommodation with shared social spaces and all-inclusive lifestyle services, which is why we have an ambitious plan to create a £2bn portfolio and the world’s first Co-Living REIT.”
Chris Lacey, Managing Director of Lacey Capital Partners, added: “The business plan leverages the team’s expertise in PRS and repositioning existing buildings to maximise value. Compared to many other BTR strategies, Inspired’s model can be scaled relatively quickly, there are lower delivery risks, and they have ready-made assets with a decent geographical spread. It’s an exciting proposition for investors.”