Urban Splash fund acquires new properties totalling £15m

The acquisitions come just weeks after the Fund announced the signing of a £20 million revolving credit facility (RCF) with Barclays, increasing total capital to c.£160 million.

Fund manager, Akeel Malik, said: “2023 has been a significant year of growth for us; we are moving forward with acquisitions and offering more people the chance to live in brilliantly designed homes in cities across the country.

“We are focusing on off-market higher yielding acquisitions in the current macroeconomic environment, whilst preserving rent-to-income levels of less than 30 per cent for our residents.

Among the acquisitions are 112 studio, one and two-bedroom apartments at East Street Mills – a Grade II Listed former textile mill, which is located in the East Leeds regeneration area close to the Calls and Royal Armouries.

Homes here have been restored with original features including exposed brickwork, cast iron pillars, original roof timbers and feature windows retained to appeal to occupiers.

Other acquisitions include the ‘upside-down’ terraced homes at Chimney Pot Park in Salford, and apartments at 3Towers in Manchester. Both schemes were originally developed by Urban Splash with whom the Fund has identified a long-term pipeline of 4,500 new homes.

Mr Malik added: “Our comprehensive offering now reaches prospective tenants across the country, with homes in Manchester, Altrincham, Birmingham, Sheffield, Bristol, Cambridge, Bradford and now Leeds.

“Our portfolio of differentiated homes is well positioned for modern living with flexible, spacious interiors, access to outdoor spaces and strong connectivity. We remain committed to offering residents well-designed mid-market homes, at rental levels that preserve an average rent-to-income ratio of less than 30 per cent.”

The Urban Splash Residential Fund has also partnered with a community platform called Ark which offers a resident app with access to discounts from local businesses.

Speaking on the partnership, Mr Malik said: “Initiatives like these are aligned with our stated emphasis on ESG and social impact, making it easier for our customers to live sustainably, while simultaneously helping secure better returns for investors.”

Urban Splash launched its Residential Fund in 2017.

Its deal with Barclays, which was announced in June of this year, saw the fund agree to an initial £20 million debt facility, with an additional £20 million available.

In April, Urban Splash signed a new £10 million funding deal with Grosvenor Property UK, the firm behind the Liverpool One retail centre.

The two firms have formed a land acquisition partnership, and intend to purchase land assets and develop schemes post-purchase.

Urban Splash, which is headquartered in Manchester, was founded in 1993 by Tom Bloxham and Jonathan Falkingham.

Gorvins acted on behalf of the Fund for the latest purchase, with Pinsent Masons acting on behalf of the vendors.