Real estate investors Blackstone and Regis will purchase a portfolio of new-build homes worth £580 million ($740 million) from Vistry Group PLC, the U.K. home builder announced on Tuesday.
Vistry £580m portfolio sale to Blackstone and Regis : Terms of the Deal
Vistry Group disclosed that it has agreed to the terms of the sale with Blackstone Real Estate and Regis Group. The portfolio, consisting of homes with a gross development value of £580 million, is set to significantly impact the housing market.
Vistry £580m portfolio sale to Blackstone and Regis : Details of the Portfolio
The portfolio, encompassing 1,750 homes, is located across 36 Vistry developments in southeast England. Vistry anticipates the first batch of homes to be completed by the end of June, with the majority of the remaining properties finalized within the next two years.
Strategic Benefits
Greg Fitzgerald, chief executive of Vistry, formerly known as Bovis Homes, stated that the agreement “supports our differentiated business model, with the certainty provided by the pre-selling of homes enabling us to accelerate our build programs, guarantee work for our supply chain, reduce sales and build costs, and create vibrant new communities.”
Institutional Impact
James Seppala, head of European real estate at Blackstone, emphasized that “institutional private capital can play an important role in providing high-quality housing stock across the U.K., particularly in the private rented sector, which is significantly undersupplied today.”
Vistry £580m portfolio sale to Blackstone and Regis : Market Perspective
Russ Mould, investment director at AJ Bell, remarked that Vistry “has pursued a differentiated strategy versus its peer group in recent times, allowing it to significantly outperform the wider sector.” He described the deal as “an example of the company’s approach, as homes are pre-sold to partners with deep pockets.”
Portfolio Management
The portfolio will be managed by Leaf Living, a provider of private rented sector housing, backed by funds managed by private equity companies Blackstone and Regis. Blackstone and Regis’s involvement is expected to enhance the quality and availability of rental homes in the U.K.
Vistry £580m portfolio sale to Blackstone and Regis : Market Reaction
Shares in Vistry, which trade on the FTSE 250 index of the London Stock Exchange, experienced a slight dip, down 0.31% on Tuesday morning at 1,305 pence, compared to 1,309 pence at Monday’s close.
