Invesco Real Estate has forward-funded the development of 99 homes at Beaulieu in Chelmsford, Essex. The project, developed by Hopkins Homes, a renowned East Anglia housebuilder and part of the untypical group, is expected to be completed in early 2027.
The acquisition is the second transaction made on behalf of a recently secured European PRS mandate from a German institutional investor. The first deal was the recently announced acquisition of 160 residential units in Madrid. Invesco Real Estate is aiming to close two more residential deals shortly, with underlying assets spread across four different European countries.
This deal marks three firsts for Hopkins Homes: their first PRS deal, their inaugural venture into timber frame construction and the extension of their exquisite homes beyond their core East Anglian roots.
The 99 homes form part of the wider Beaulieu masterplan and will consist of 70% Single-Family Housing (SFH) and 30% low-rise apartment units. The c. 9,791m2 development will target an EPC A energy rating and, among other elements, make use of photovoltaic panels, LED lighting, air source heat pumps and electric vehicle charging. The wider Beaulieu masterplan is forecast to be home to 3,600 families upon completion. Residents will benefit from new schools, community uses, veterinary facilities, indoor sports and other leisure facilities, cafes and play areas. Beaulieu also has 71.2ha of public open space.
Like much of the UK, a limited pipeline of SFH developments exists in Chelmsford, despite the high demand for rental housing stock. Build-to-rent units only account for 0.3% of the total households in Chelmsford, reflecting a material undersupply which has helped to cement a c. 12% growth in rents between August 2022 to August 2023.
The underlying objective of the PRS mandate is for Invesco Real Estate to create a diversified pan-European residential portfolio excluding Germany in European cities with strong demographics, delivering sustainable distributions and a total return. The mandate underscores the attraction of the European PRS market and Invesco Real Estate’s long-term, established success in the residential sector.
Rob Johnston, Managing Director, Head of Investments, UK & Nordics, Invesco Real Estate, said: “The UK suffers from a chronic, long-term undersupply of housing, with an average shortfall of c. 90,000 homes per annum since 2017. This undersupply coupled with a sustained increase in the number of households nationally puts a continued strain on existing housing stock. Beaulieu is a great example of a high-quality plan to address the shortfall and create a viable new community in a prime southeast UK location. We’re excited to be playing a key role in the development on behalf of a major German institutional investor.”
Image source - Pexels.
Europe Real Estate — an overview of real estate developments in European countries.
