US landlord Alliance to pioneer UK build-to-let

·         One of the largest residential landlords in the US is setting up a fund in the UK to own multi-family rented housing.

Alliance Holdings, a private owner and operator of multi‑family flats in the US, has 45,000 apartments on its books.

It has appointed CB Richard Ellis to help to export its model to the UK by setting up a fund to buy up blocks of homes off plan from developers.

It then intends to let the flats out at modest rents, in keeping with its US model.

The fund, which is expected to focus on institutional investors, has a target size of £350m-£400m, and will offer investors a 5% net yield.

CBRE Residential and CBRE Real Estate Finance will advise on its UK acquisitions.

Alan Collett, former senior partner of Allsop, and Richard Donnell, head of research at housing information group Hometrack, have been assessing the fund’s viability in the UK market, and are expected to sit on an investment committee to offer additional advice.

Nick Jopling, executive director of CBRE Hamptons International, CBRE’s joint venture with residential agent Hamptons, said: “The market is not properly catering for young people after they leave home and before they can fund their first home.

"We think this would be a great opportunity for Alliance to come over to the UK and help to fill this gap, not just in London but across the UK. The fundamentals have never been better for build-to-let.” 

Steven Ivankovich, executive vice-president of Alliance Holdings, which owns a portfolio of flats throughout the US Midwest, West and along the Eastern Seaboard, was unavailable for comment.

                         EGi News