Mitsubishi Estate London, advised by Europa Capital, has acquired its first UK build-to-rent residential development in Nine Elms, south west London. Europa Capital is retained as an investment manager and will be responsible for identifying further build-to-rent acquisition opportunities on behalf of Mitsubishi Estate London in the UK. The project builds on the existing relationship between the two companies. Mitsubishi Estate is Europa Capital’s principal shareholder and the two companies are currently assembling a portfolio of commercial properties in Europe through a separate vehicle for a core long term income investment strategy. The purchase price was not disclosed.
Yuichiro Shioda, managing director and CEO of Mitsubishi Estate London, said: “Build-to-rent is an important part of Mitsubishi Estate’s global portfolio, and while this is our first acquisition of such an asset in the UK, it is a sector that has been of interest for some time. This new investment strategy enables us to capitalise on Europa’s considerable expertise, but also paves the way for future build-to-rent strategic investment opportunities.”
Hugo Black, Acquisitions Partner at Europa Capital London, commented: “This acquisition builds on Europa’s residential investment strategy. Since 2012 we have invested in or developed over 7,000-bed spaces across the private rented sector and student accommodation in key UK and Continental European locations. London has a quickly expanding population and strong demand for new rental homes whilst Nine Elms, the home of the new U.S. Embassy is enjoying rapid regeneration with new office and residential development and improving transport links. Build-to-rent is an emerging asset class in the UK and we look forward to working with Mitsubishi on further build to rent opportunities in the UK.”