Wednesday 30 June 2021 9:48 am

Australian bank Macquarie places £1bn bet on UK rental housing market

Australian bank Macquarie is betting on the UK rental housing market with the creation of its new business that is planning to invest over £1bn, according to reports.

The bank’s asset management arm is eyeing London to buy, develop and operate multi-family housing complexes, as well as other cities across the country, it said in a statement today.

The newly formed business, Goodstone Living, plans to rally around £1bn of debt and equity, Bloomberg reported, citing a person familiar with the matter.

The rental market is set for a shake-up as a lack of supply and swelling demand has been reported across Europe – making purpose-built rental housing an attractive bet for businesses seeking steady returns.

“This sector has emerged as a global mega-trend in real estate over the last 10 years, driven by secular trends including urbanization, digitalization and demographic shifts,” said chief investment officer and co-head of Macquarie Asset Management’s real estate team in Europe, Dana Gibson, said.

Following London’s pandemic-induced exodus, investors are hedging bets that young professionals will flock back to the capital one restrictions ease – particularly as house prices rise.

“We think some consolidation would serve the industry well and we’d like to be at the forefront of that,” Gibson added.