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Wall Street giant buys UK’s biggest single-family manager
A giant US asset manager has entered the UK’s suburban build-to-rent market by acquiring landlord and management company, Gatehouse Living.
A giant US asset manager has entered the UK’s suburban build-to-rent market by acquiring landlord and management company Gatehouse Living #UKhousingNew York-headquartered Apollo Global Management has purchased Gatehouse Living Group, one of the UK’s biggest managers of single-family build-to-rent homes. Financial terms of the deal were not disclosed.
Apollo’s acquisition from Kuwaiti-owned Gatehouse Bank includes both arms of Gatehouse Living. The first is Gatehouse Investment Management, which manages single-family homes for investors, including Carlyle and Greykite.
Gatehouse Investment Management has built up and sold portfolios for a series of investors that include Goldman Sachs, KIA and TPG, and acquired more than 5,000 homes from the UK’s largest house builders.
It currently manages a portfolio for Carlyle, although a sales process is ongoing, and Greykite, which is aiming to create a £750m portfolio.
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In addition, Apollo is acquiring Ascend Properties, Gatehouse Living’s property management arm, which manages over 10,000 single-family homes for both Gatehouse and third-party clients such as PRS REIT and Lloyds Living.
Gatehouse Living Group will continue to be led by chief executive Paul Stockwell and its management team, and it will be rebranded with an announcement in due course.
The group will invest its own capital and that of its third-party partners, and Ascend will maintain its property management services for external institutional portfolios.
Apollo, which has $938bn (£708bn) of assets under management globally, is already active in the UK housing sector via Foundation Home Loans, its specialist mortgage lender, and its house builder Miller Homes.
Gibson Dunn are serving as legal counsel to the Apollo funds.
Paul Stockwell, chief executive of Gatehouse Living Group, said: “Gatehouse Living Group has led the growth of institutional rental housing, creating a prominent platform that strategically supports the sector and accelerates the delivery of much-needed high-quality housing throughout the UK.
“This transaction with Apollo is a testament to the strength of our holistic investment and property management platform and will support our continued expansion in the market.”
Edward Jones, partner at Apollo, said: “Gatehouse Living Group, under Gatehouse Bank’s stewardship, has established itself as a vertically integrated leader in the UK housing sector, supporting the supply of high-quality, professionally managed rental homes.
“We look forward to working closely with management to further enhance and expand its operational capabilities and to supporting the platform’s continued success as the UK focuses on bolstering homebuilding across tenures and attracting more investment to the sector.”
Charles Haresnape, chief executive of Gatehouse Bank, said: “We are incredibly proud of the success achieved since Gatehouse Living Group launched its first investment in 2014 and the critical role we have played, as an early entrant, in establishing the UK build-to-rent market.
“The sale is part of Gatehouse Bank’s long-term retail growth strategy and will allow for further development of its home finance product offering, which has seen strong demand supporting UK resident, UK expat and international homebuyers and landlords.
“We are confident that Gatehouse Living Group is well positioned today to continuing building on its strong foundation, supporting the supply of new rental homes in the UK.”
Earlier this month, US investor Kennedy Wilson and Canada Pension Plan Investment Board announced they had bought 788 suburban build-to-rent homes across the UK for £300m.
In February, the UK’s largest local government pension scheme pool, Border to Coast Pensions Partnership, entered the suburban build-to-rent market in a £70m deal.
Meanwhile, in January, US private equity giant Blackstone put its suburban build-to-rent business on sale for over £1bn.
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