Image credit: Barratt London & Strutt & Parker.

abrdn has announced the acquisition of 50 new-build apartments at Springfield Place in Tooting, southwest London, on behalf of the South Yorkshire Pensions Authority. The acquisition, facilitated by Newmark Company Gerald Eve, marks a strategic investment into the Private Rented Sector (PRS), aiming to deliver high-quality, energy-efficient rental homes.

The apartments, developed by Barratt London, comprise a mix of one-, two-, and three-bedroom units. Residents will benefit from 22 car parking spaces, a private landscaped courtyard, and access to 32 acres of public parkland. The units are located near Tooting Broadway Underground station and are connected to the Springfield Village district heating network, providing sustainable local energy.

James McLean, Fund Manager at abrdn, stated, “We were delighted with the opportunity to invest in high-quality, energy-efficient new-build apartments in an accessible part of southwest London. This is the first investment by our clients into the Private Rented Sector which meets their objective of investment into a resilient cashflow, with the aim of consistent returns.”

James Dunne, Head of Operational Real Estate at abrdn, added, “We believe that institutional ownership in the UK rental market will expand beyond amenity-heavy developments, creating greater choice of rental levels. In areas such as Tooting, where the highly accessible location provides significant local amenity, there is less need for expensive onsite facilities. The provision of professionally managed, quality accommodation in long-term stable ownership will appeal to a wide range of residents while passing less cost onto renters.”

The Springfield Place scheme will be leased and managed by operational living experts Ringley. This acquisition aligns with the growing trend of pension funds and institutional investors viewing residential rental property as an ideal solution for long-term, low-risk returns, while also contributing to Environmental, Social, and Governance (ESG) goals by providing high-quality living spaces.

Bobby Barnett, Partner at Gerald Eve, commented, “Pension funds and other institutional investors are increasingly seeing residential rental property as an ideal solution for long-term, low-risk returns while also contributing to ESG goals by providing people with high-quality places to live. At the same time, high house prices, inflation, and higher interest rates are combining with changing attitudes to make the professional rental sector an attractive choice for both individuals and families. This is being recognised by bulk housebuilders who are looking to diversify their business models by selling appropriate units in volume to long-term landlords.”

This development will likely be highlighted in upcoming property networking events in London, providing a prime example of the successful integration of investment strategies and sustainable housing solutions.