Fund manager Hermes Investment Management and UK property firm Countrywide, through their jointly-owned residential property fund, Vista, are to buy the Baltic Village development of 324 apartments in Liverpool for over £50 million.
The transaction is understood to be one of the largest private residential sector (PRS) deals undertaken outside London. It is also the Vista fund’s first major investment, and the development will be completed in summer 2016 by Balfour Beatty. The Baltic Village will offer tenants rental accommodation in a professionally-managed development with a high level of service. Hermes Real Estate chief executive, Chris Taylor, said: “Baltic Village is a solid long-term investment in line with our strategy of focusing on high-quality, purpose-built residential stock across the UK, creating purpose-built accessible housing to rent in city centre locations which benefit from improving public realm, infrastructure, heritage, retail and cultural facilities.” Taylor added that the transaction fitted in with urbanisation and lifestyle trends which the fund aimed to exploit.
The Vista fund has set up in October 2014 as a joint venture between Hermes and Countrywide. It has a target return of 9-10% and has a target of reaching £1 billion in size over the next five years.