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.