Qatari Diar Real Estate Investment Co. is joining U.K. developer Delancey Real Estate Asset Management Ltd. and Dutch pension fund APG Asset Management NV to create a 1.4 billion-pound ($2 billion) home-rental business in London, with properties in the former Olympic athletes’ village and the Elephant & Castle district.
The venture, which is subject to regulatory approval, will manage 4,000 homes, of which 1,500 are already built, 1,000 are under construction. The properties will be operated under the Get Living London brand.
Investors are earmarking as much as 30 billion pounds for the U.K. multifamily sector, according to a 2015 survey by broker Savills Plc, as they seek to develop purpose-built rental homes catering to people shut out of the ownership market by surging prices.
“This merger between two leading London private rented-sector schemes is the first step in what is a much larger endeavor; to significantly increase the supply of new homes in connected and affordable locations in British cities,” Sheikh Jassim Al-Thani, chief development officer in Europe and the Americas for Qatari Diar, said in a statement.
Qatari Diar is currently developing 2,818 homes at the East Village former Olympic site in Stratford with Delancey. The Elephant & Castle project, initially comprising 374 homes as well as 272 student housing units, is being undertaken by APG and Delancey.
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