Published by the FT
The £580mn deal by Blackstone and its minority investmentpartner Regis marks the second major transaction with Vistry in eight monthstotalling £1.4bn, funding more than 4,500 homes.
The UK rental sector still largely relies on smallprivate landlords but large money managers are increasingly moving into themarket. Residential properties have weathered the downturn in commercial realestate caused by higher interest rates better than many other sectors.“Institutional private capital can play an important role in providing highquality housing stock across the UK, particularly in the private rented sectorwhich is significantly undersupplied today,” said James Seppala, head ofEuropean real estate at Blackstone. The homes will be managed by LeafLiving, a company launched by Blackstone and Regis in 2021 to managesingle-family homes for rent in the UK. The US private equity group has backed16,500 homes in the UK so far between Leaf and a second company, Sage, anaffordable housing provider. People living in the UK’s 5.5mn privaterental homes have suffered through a period of record rent increases thatanalysts blame on a rush of tenants back into the market after Covid-19 beingmet by a shortage of landlords, who have faced rising interest costs on theirdebt and increased regulation. The Conservative government’s flagship bill toincrease tenants’ protections was scrapped when Prime Minister Rishi Sunakcalled a snap election for July.