Synopsis: UK housebuilder Vistry has announced a major partnership with private equity giant Blackstone and property investor Regis Group. The deal involves the construction of 1,750 new homes across 36 Vistry developments in the southeast of England, with a gross development value of £580 million.
Vistry Group, a leading UK housebuilder formed from the merger of Countryside and Linden Homes, has secured a significant deal to deliver 1,750 new homes in partnership with Blackstone and Regis. The agreement, announced on Tuesday, June 4th, 2024, will see the homes built across 36 Vistry developments concentrated in the southeast of England.
This project represents a major investment in the UK housing market, with a gross development value of £580 million. The homes will be pre-sold in line with Vistry’s existing strategy, which focuses on selling around 65% of all its properties through partnerships. This approach provides certainty for Vistry’s build programs, reduces sales and build costs, and guarantees work for their supply chain.
Commenting on the agreement, Greg Fitzgerald, Chief Executive of Vistry Group, emphasized the benefits of partnering with organizations like Leaf Living, the private rented sector housing provider backed by funds managed by Blackstone and Regis. “This agreement supports our differentiated business model,” he said. “By working in partnership, we can maximize the number of high-quality homes we deliver every year.”
The first completions under this agreement are expected by the end of June 2024, with the majority of the homes anticipated to be finished within the next two years. This project is expected to play a key role in addressing the UK’s current housing shortage, with Vistry aiming to deliver more than a 10% increase in new home completions this year.
James Seppala, Head of European Real Estate at Blackstone, also commented on the partnership, highlighting the role of institutional capital in providing much-needed rental housing stock. “Institutional private capital can play an important role in providing high quality housing stock across the UK, particularly in the private rented sector which is significantly undersupplied today,” he said. “Partnerships such as these can meaningfully accelerate the delivery of new homes and help alleviate structural undersupply across the sector.”
This agreement between Vistry, Blackstone, and Regis signifies a growing trend in the UK housing market. Partnerships between housebuilders and institutional investors are increasingly seen as a way to address the housing shortage and provide much-needed rental properties.
