Apollo funds buy rental property manager Gatehouse Living

The acquisition from Gatehouse Bank for an undisclosed sum comprises GLG’s investment arm Gatehouse Investment Management and its property management arm Ascend.

GLG manages around 10,000 homes for itself and third-party clients, 4,000 of which are operated under the Ascend Living brand. The group has established five businesses and successfully exited three, acquiring more than 5,000 homes across the UK.

The group will continue to be led by its current chief executive Paul Stockwell alongside its existing management team, but will be rebranded.

It will also invest its own capital and that of third-party partners, with Ascend maintaining its property management services for external institutional portfolios.

“GLG has led the growth of institutional rental housing, creating a prominent platform that strategically supports the sector and accelerates the delivery of much-needed, high-quality housing throughout the UK,” Stockwell said.

“This transaction with Apollo is a testament to the strength of our holistic investment and property management platform and will support our continued expansion in the market.”

The transaction forms part of Apollo’s wider investment activity in the UK housing market, which includes investments in affiliate platform Foundation Home Loans, a specialist mortgage lender, and  Miller Homes. In 2023, Apollo entered into an agreement to acquire United Living Group.

Apollo partner Edward Jones added: “GLG, under Gatehouse Bank’s stewardship, has established itself as a vertically integrated leader in the UK housing sector, supporting the supply of high-quality, professionally managed rental homes.

“We look forward to working closely with management to further enhance and expand its operational capabilities, and to supporting the platform’s continued success as the UK focuses on bolstering homebuilding across tenures and attracting more investment to the sector.”

Gibson Dunn is legal counsel to the Apollo funds.