The Urban Splash Residential Fund has made a significant investment to expand its portfolio, acquiring 129 homes across Manchester, Salford, and Leeds. This £15 million investment has increased the number of homes in the Urban Splash UK Residential LLP (USUKR) portfolio by 41%, bringing the total to 437 homes. The acquisition also adds £1.3 million of income to the rent roll.

This move follows the fund’s recent announcement of securing a £20 million revolving credit facility (RCF) with Barclays, which has increased the total capital to around £160 million.

Among the acquired properties are 112 apartments at East Street Mills, a grade II-listed former textile mill in the East Leeds regeneration area. The homes have been restored, retaining original features like exposed brickwork, cast iron pillars, original roof timbers, and feature windows to attract occupants.

The acquisitions also include unique ‘upside-down’ terraced homes at Chimney Pot Park in Salford, and apartments at 3Towers in Manchester. Both of these schemes were initially developed by Urban Splash, and the fund has identified a long-term pipeline of 4,500 new homes with them.

Akeel Malik, the fund manager, expressed optimism about the growth in 2023, emphasizing the focus on off-market higher-yielding acquisitions. He also highlighted the fund’s commitment to preserving rent-to-income levels of less than 30% for residents, which currently stands at 22%.

The legal aspects of the acquisition were handled by Gorvins on behalf of the fund, and Pinsent Masons acted on behalf of the vendors.

This acquisition marks a significant step in the Urban Splash Residential Fund’s growth strategy, reflecting a commitment to providing well-designed homes in key urban areas across the country. By focusing on unique properties and maintaining a responsible approach to rent-to-income levels, the fund is positioning itself as a prominent player in the residential property market.