Blackstone Inc. and Regis Group Plc have finalised a deal to purchase a portfolio of 1,750 homes from UK homebuilder Vistry Group Plc for £580 million. The homes, mainly located in the south east of England and spanning 36 developments, will be managed by Leaf Living, a private rented sector housing provider backed by funds managed by Blackstone and Regis.

The sale occurs amid delays in UK interest rate cuts, which have tempered hopes of a robust recovery in the housing market. However, Vistry has shown optimism compared to its sector peers, bolstered by resilient demand for its affordable homes from housing associations and the private rented sector.

Greg Fitzgerald, Vistry’s chief executive, stated, “By working in partnership with organisations like Leaf Living we can maximise the number of high-quality homes we deliver every year. This agreement supports our differentiated business model, with the certainty provided by the pre-selling of homes enabling us to accelerate our build programmes, guarantee work for our supply chain, reduce sales and build costs, and create vibrant new communities.”

The first completions under the agreement with Blackstone and Regis are expected by the end of June, with most homes anticipated to be finished within the next two years.

Last month, Vistry increased its annual homebuilding target by about 3% to over 18,000 units, despite warnings from rivals like Taylor Wimpey and Persimmon about subdued market conditions this year. Blackstone has been actively investing in UK residential property, having acquired 2,915 homes for £819 million from Vistry in November.

Funds managed by Blackstone and Regis will acquire the properties in a deal valued at £580 million, as Vistry shifts its focus towards its partnerships business, which builds affordable housing primarily for government and non-profit partners.