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Build-to-rent developer and house builder announce joint venture
A build-to-rent developer has announced a joint venture with a house builder to build 500 homes by 2028.
The partnership between Placefirst and Doncaster-based Strata Homes will focus on building single-family rental homes, such as low-rise flats and family homes in suburban locations.
It will begin with the two firms delivering 128 homes in Leeds, while the partners have also identified a further 221 homes for development across the UK.
The joint venture’s first deal will see Placefirst take on 128 homes to rent at Strata’s Desire development near Thorpe Park. The homes are expected to be completed in May.
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Placefirst will manage and maintain the homes, which consist of a mix of two-bedroom townhouses as well as three and four-bedroom semi-detached houses.
These homes will be built using modern methods of construction and timber frames. They represent Placefirst’s second development in Leeds after Cross Heath Grove in the south of the city.
Placefirst said it was looking to develop homes “at scale and speed” without compromising on sustainability and “long-term value”.
Anna Hwang, chief investment officer at Placefirst, said the partnership was “an important step forward”.
She said: “Combining our expertise, we can deliver sustainable homes at scale faster than ever before. Through our shared commitment to creating places where residents don’t just live but thrive, we will deliver a homeowner-quality living experience for our renters.
“With over a decade of placemaking experience, we understand the importance for residents to feel settled and put down roots. By prioritising creating neighbourhoods with a mix of home sizes, such as the first tranche of this partnership, we will continue to create places where our residents can thrive long term, supporting them at every stage of their life.”
KPMG Corporate Finance advised Strata on the partnership.
Gemma Smith, chief executive officer of Strata, said: “This partnership with Placefirst is a natural progression for Strata as we continue evolving to become an innovative multi tenure home builder.”
She continued: “We have designed a collection of homes for the single-family rental market, retaining the signature Strata style inside and out. We have worked with Placefirst to carefully consider the internal specification and ensure the homes offer everything a resident will be hoping for.”
Within the build-to-rent sector, investment in single-family housing has increased markedly over the past five years.
In 2023, the single-family sector accounted for 40% of all build-to-rent activity, totalling £1.9bn – a five-fold increase over 2022 investment volumes, according to Legal & General.
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