Moorfield Group has acquired a 93,000ft², 77 show home portfolio from privately-owned housebuilder Avant Homes for €22.2m (£20m). Located across the UK, the show homes have been immediately leased back to Avant Homes on an average three-year term. On expiry of the individual leases, Moorfield will either sell the homes on the open market, leveraging Avant Homes’ sales channels, or rent the homes to complement its existing build-to-rent activities.
Charles Ferguson-Davie, Chief Investment Officer of Moorfield Group, said: “Despite the volatility caused by the COVID-19 pandemic, we remain convinced that the residential sector will continue to be a resilient asset class, providing ongoing opportunities to generate outperformance on behalf of our investors. We have pioneered investment into a range of residential use classes and this innovative transaction provides our investors with further diversification.”
Ross Netherway, Head of Origination at Moorfield Group, added: “Through this investment we are cementing our relationship with one of the UK’s most dynamic and ambitious housebuilders. It is the first of what we hope will be a number of similar investments, assisting housebuilders that are seeking alternative ways to accelerate the delivery of new housing for sale and for rent across the UK.”
Avant Homes Chief Operating Officer, Mark Mitchell, commented: “This is an excellent transaction for both businesses. We are very pleased to be working with Moorfield Group, having begun discussions at the start of this year. COVID-19 has presented the housebuilding industry with many challenges, which we have responded to dynamically, with the safety and wellbeing of our people as our first priority. Looking ahead, we remain committed to continuing to execute against our growth strategy, underpinned by the resilience and agility of our business, the excellence of our product and the commitment of our people. Moorfield Group’s investment is testament to their belief in our ability to continue to succeed. As part of our growth strategy, we are exploring a number of other opportunities with Moorfield Group and hope to be able to reveal more detail about what they are in due course.”