One of the world's best-known investment management firms and a premium developer have announced the completion of a deal that will deliver Scotland's first large scale institutional Private Rented Sector (PRS) scheme.
LaSalle has purchased Forbes Place, a major site in Aberdeen, for just under £60 million from developer Dandara.
Forbes Place is a mixed development of 292 apartments and townhouses aimed at the medium-term occupancy market, providing homes to cater for the demand from employees of big firms operating in the area such as BP and Aker Solutions.
“Our growth in the residential sector comes off the back of increasing demand for high quality rented housing coupled with attractive long-term real returns, which creates a compelling case for investment. We are targeting assets of 80+ units in regional towns and cities across the UK identified by our proprietary model as having strong economic fundamentals,” says Andrew Stanford, UK Residential Fund Manager, LaSalle Investment Management.
“Large-scale investment by pension funds has an important role to play in improving the quality of housing stock, as well as the choice and service for tenant customers in the private rented sector. LaSalle has substantial client funds available for investment in PRS.”
Gavin Wyley, Managing Director of Dandara in Aberdeen, adds: “This is a significant investment in Aberdeen, which underlines the continued strength of the city’s residential property market.”
“Forbes Place was designed specifically for the PRS sector and we are pleased to secure this deal with LaSalle as it makes its first move into this sector on behalf of a large pension fund client who was looking for an opportunity to purchase a purpose-built-and-maintained development in a major business location where there is already significant demand.”