Packaged Living enters joint venture to develop BTR portfolio

Specialist UK Build to Rent (BTR) investor, Packaged Living, has entered a new joint venture with USAA Real Estate (USAARE).

The joint venture covers the acquisition, planning, construction, and operation of BTR assets in the UK. The aim will be to create a diversified BTR portfolio of several thousand.

This will help meet rental housing demand and also offer residents more sustainable and energy-efficient homes, they say.

What’s in store for the BTR portfolio?

The joint venture has completed its first land acquisition in Liverpool. The planning application that will be submitted in the coming months will outline future site acquisitions, planning, and development.

Residents will have multiple local transport links, shops, amenities and leisure centres to choose from. Additional site acquisitions and development plans are likely to be announced in the next few months.

Packaged Living has already acquired, funded, developed, and operated over 5,000 homes so it believes the delivery of the JV’s portfolio is in safe hands.

USAARE is proficient in acquiring, developing, financing, and managing high-quality real estate assets in North America and Europe. The company is in its 8th year of investment in Europe and its 40th year as a company.

Ed Ellerington, founder and managing director of Packaged Living, commented, “The UK has long had a mismatch between the demand for homes and the volume supplied to the market. We see a huge opportunity to positively change that market and we are delighted to launch USAARE as one of our new partners. Our JV will focus on creating best-in-class multifamily BTR assets where the need is greatest, whilst also delivering properties that are fit for the future, combining quality finishes with high energy efficiency, and lower costs.”

Justin Hildebrandt, executive managing director and Head of Europe at USAARE commented “We see an opportunity to capitalise on unmet consumer and investor demand for institutionally-owned multifamily housing in the UK through developing rental homes in locations with compelling market dynamics and buildings that have market-leading design, sustainability metrics, and amenities."

"Having already developed and invested in US multifamily in scale for decades, it was a natural choice to enter the UK market. Our significant experience in the US multifamily sector along with our experience with planning and development in the UK pairs well with Packaged Living’s expertise. The UK BTR market is rapidly maturing and continued densification in and around major cities sets the stage for long-term growth.”