AIMCo and Ridgeback Acquire Mitre Yard to Expand UK BTR Portfolio
Alberta Investment Management Corporation (AIMCo) and investor, developer and operator Ridgeback Group have acquired the Mitre Yard Build to Rent development in North Kensington from City & Docklands.
The Northwest London development comprises 241 apartments alongside over 5,000 sq ft of commercial space and extensive resident amenity.
“We are pleased to complete the acquisition of Mitre Yard, adding to our best-in-class UK Build to Rent portfolio.
“The last few years have clearly demonstrated the strength of the Build to Rent sector as we have continued to see demand for high quality rental homes increase and we are delighted to be continuing our long-term partnership with AIMCo.”
George Bossom, Partner, Ridgeback GroupSituated adjacent to the Old Oak Opportunity area and the under-construction Old Oak Common railway station, which will serve both HS2 and Crossrail, Mitre Yard will provide excellent transport connections. Over 250,000 passengers are forecast to pass through the station every day.
“AIMCo continues to have confidence in the UK Build to Rent sector, and we have sought to increase our exposure to the dynamic London market where the current viability challenges are continuing to constrain future supply.
“The acquisition of Mitre Yard is an important strategic milestone as we continue our expansion into the sector, and we look forward to working with Ridgeback and ila to create another exceptional living experience in West London.”
Rupert Wingfield, Head of European Real Estate, AIMCoThe management and operation of the scheme will be undertaken by Ridgeback’s in-house management platform ila. ila’s management approach aims to provide a seamless service to residents.
“We are delighted to work with two such well-regarded blue-chip organisations, Ridgeback and AIMCo.
“It’s fantastic that we have managed to attract institutional grade investment capital into this exciting West London regeneration area.”
Gary Sacks, CEO, City & DocklandsThe acquisition of Mitre Yard further strengthens the AIMCo and Ridgeback joint venture’s portfolio of over 3,300 apartments across 11 assets with a GDV of approximately £1bn.
In June 2024, Mitre Yard became one of the chosen Build to Rent schemes to implement deposit alternative supplier Reposit’s product. The collaboration will ensure residents can access an alternative to the traditional five-week cash deposit.
IPE Real Assets also reports AIMCo-Ridgeback UK build-to-rent partnership adds Mitre Yard:
Alberta Investment Management Corporation (AIMCo) and Ridgeback have expanded their UK build-to-rent (BTR) partnership with the acquisition of the Mitre Yard in North West London.
The AIMCo-Ridgeback partnership has invested an unspecified sum to acquire the 241 apartment scheme with over 5,000sqft of commercial space in North Kensington from City & Docklands.
The latest acquisition brings the joint venture’s portfolio to over 3,300 apartments across 11 assets, with a gross development value of around £1bn (€1.2bn).
Rupert Wingfield, the head of European real estate at AIMCo, said: “AIMCo continues to have confidence in the UK BTR sector, and in particular we have sought to increase our exposure to the dynamic London market where the current viability challenges are continuing to constrain future supply.”
George Bossom, partner at Ridgeback, said: ”We are pleased to complete the acquisition of Mitre Yard, adding to our best-in-class UK BTR portfolio.
“The last few years have clearly demonstrated the strength of the BTR sector as we have continued to see demand for high quality rental homes increase and we are delighted to be continuing our long-term partnership with AIMCo.”
Gary Sacks, CEO at City & Docklands, said: “We are delighted to work with two such well-regarded blue-chip organisations, Ridgeback and AIMCo.
“It’s really fantastic that we have managed to attract institutional grade investment capital into this exciting West London regeneration area.”
Earlier today, AIMCo issued a press release stating it and Ridgeback will grow their BTR platform with the acquisition of Mitre Yard in North Kensington:
London – The Alberta Investment Management Corporation (AIMCo) and Ridgeback Group have acquired Mitre Yard, a premier Build-to-Rent (BTR) development in North West London. This acquisition from City & Docklands adds to the joint venture’s expanding footprint in the thriving BTR sector and aligns with its vision for delivering high-quality urban homes for rent.
Mitre Yard is a newly completed residential development featuring 241 apartments along with over 5,000 sq ft of commercial space and extensive resident amenity. The management of Mitre Yard will be undertaken by ila, Ridgeback’s in-house management platform. ila’s comprehensive management approach will ensure that residents experience seamless service and enjoy the full benefits of their new community.
Situated adjacent to the Old Oak Opportunity area and the under-construction Old Oak Common railway station, which will serve both HS2 and Crossrail, the area is expected to be transformed into a thriving super-connected neighbourhood with over 250,000 passengers forecast to pass through the station every day.
The acquisition of Mitre Yard further strengthens the AIMCo-Ridgeback Joint Venture’s position as one of the UK’s largest BTR platforms, with a portfolio of over 3,300 apartments across 11 assets with a GDV of c.£1bn.
George Bossom, Partner at Ridgeback Group, said: "We are pleased to complete the acquisition of Mitre Yard, adding to our best-in-class UK BTR portfolio. The last few years have clearly demonstrated the strength of the BTR sector as we have continued to see demand for high quality rental homes increase and we are delighted to be continuing our long-term partnership with AIMCo.”
Rupert Wingfield, Head of European Real Estate at AIMCo, said: “AIMCo continues to have confidence in the UK BTR sector, and in particular we have sought to increase our exposure to the dynamic London market where the current viability challenges are continuing to constrain future supply. The acquisition of Mitre Yard is an important strategic milestone as we continue our expansion into the sector, and we look forward to working with Ridgeback and ila to create another exceptional living experience in West London.”
Gary Sacks, CEO at City & Docklands, said: “We are delighted to work with two such well-regarded blue-chip organisations, Ridgeback and AIMCo. It’s really fantastic that we have managed to attract institutional grade investment capital into this exciting West London regeneration area.”
About Alberta Investment Management Corporation (AIMCo)
AIMCo is one of Canada’s largest and most diversified institutional investment managers with more than C$168.9 billion of assets under management as at June 30, 2024. AIMCo invests globally on behalf of pension, endowment, insurance, and government funds in the Province of Alberta. With offices in Edmonton, Calgary, Toronto, London, Luxembourg, New York, and Singapore, our more than 200 investment professionals bring deep expertise in a range of sectors, geographies, and industries. For more information on AIMCo please 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 4,200 homes with a GDV in excess of £1.4bn.
Alright, let's go back a couple of years ago when AIMCO and Ridgeback acquired a £283 million UK Build-to-Rent portfolio from Angelo Gordon, beefing up their BTR platform.
The latest acquisition brings the joint venture’s portfolio to over 3,300 apartments across 11 assets, with a gross development value of around £1bn (€1.2bn).
The BTR sector in the UK is booming.
Earlier this week, I discussed how CPP Investments is partnering with Kennedy Wilson to launch a new UK single-family rental housing joint venture targeting £1 billion in real estate.
In that comment, I discussed various analyses which demonstrate the fundamentals of UK's build-to rent market remain very strong.
Earlier this week, Savills released its Q3 update on the UK's BTR market here.
I'll just provide the overview below:
The third quarter of 2024 saw £800 million of investment activity – a marked improvement on the same period last year. This investment continues to fund housing delivery, in partnership with housebuilders or with contractors on investor-owned sites. Investment needs to continue because the construction pipeline has shrunk by a fifth in the last twelve months: the record level of completions is not being matched by new construction starts.
As well as a shrinking construction pipeline, there is growing evidence that the private rented sector (PRS), as a whole, has started to contract. Build to Rent (BTR) investment will help to mitigate loss of rental supply and replace the homes being lost with higher-quality, more energy-efficient ones. But local authorities need to adopt a much more proactive approach to BTR delivery in order to get the numbers up. Partnerships will be key for future growth, as evidenced by the repeat transactions between investors and housebuilders in the space. We expect a further acceleration of delivery is likely to come.
Single Family Housing (SFH) has become a key part of the UK residential investment market. SFH made up half of total BTR investment in the past year - the highest proportion of the total it has ever been.
This augurs well for CPP Investments' joint venture with Kennedy Wilson and AIMCo's joint venture with Ridgeback.
The key thing is how both AIMCo and CPP Investments partnered up with great strategic partners to scale into the UK's BTR market.
Below, APW Property discusses how UK state-backed pension funds and Dutch pension PGGM are boosting the UK's build-to rent market. As you can see, there is already fierce competition in this sector.
Second, MoveIQ's Phil Spencer discusses why build-to-rent properties are more attractive than conventional rental properties, offering amenities, facilities and incredible service.
Lastly, take a virtual tour of this stunning 2 bedroom apartment in west London, Mitre Yard, furnished by New Concept Design.
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