United Kingdom Residential Property Investment Yield Sheet December 2018
Big deals dominate Q4 so far
Since we issued our September yield benchmark the larger deals have caught the headlines.
At the start of the quarter, the Delancey led group and Lonestar appeared to come within a hair’s breath of creating a true goliath for Build to Rent in the UK. If the former had successfully acquired Quintain and Wembley Park it would have led a combined pipeline of more than 13,000 dwellings. For the time being at least their respective platforms of Get Living and Tipi will go head to head in spearheading large scale BTR in London.
The most significant transaction of Q4 has been Grainger’s continued investment in the sector by acquiring APG’s stake in their GRIP REIT partnership in a deal that valued the London focussed portfolio at more than £700m. The fact that the purchase was supported by shareholders and a fully underwritten share issue provides a great boost for confidence to the London market.
We leave our key yields unchanged over the quarter reflecting the continued strength of pricing in this sector.
For further information and to download the December 2018 yields, click here.