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Pension Insurance Corporation (PIC) has acquired Ebb & Flow, a 598-home built-to-rent (BTR) development in Reading from Lincoln MGT, for more than £200m.
The fully operational scheme was developed by Lincoln MGT, the joint venture between Lincoln Property Company and MGT, and is part of the wider £850m mixed-use Station Hill urban redevelopment.
Ebb & Flow’s amenities include fitness studios, roof terraces, club lounges, private dining locations and pocket parks.
The acquisition is PIC’s largest investment in the living sector to date, as well as one of the largest acquisitions of an operational BTR asset outside central London.
It adds to PIC’s four existing BTR assets: New Victoria in Manchester; One Eastside in Birmingham; The Wiltern in Ealing, west London; and Arbour in Milton Keynes.
James Agar, head of real estate origination at PIC, said: “The acquisition of Ebb & Flow aligns with PIC’s BTR investment strategy, which sets out a targeted approach to acquiring well-located, high quality developments in strong locations such as Reading.
“The significant demand for professionally managed rental housing across the UK supports sustainable, inflation-linked cashflows that match PIC’s pension liabilities over coming decades.
“Ebb & Flow supports PIC’s long-standing strategy of investing in the UK’s structurally undersupplied living sector to deliver tangible social value. Fully let, best-in-class operational assets represent strong relative value at this point in the market cycle, delivering attractive risk-adjusted returns, as we navigate higher interest rates and the persistently tight credit spread environment.”
Callum Thorneycroft, managing director AT MGT Investment Management, added: “The acquisition of Ebb & Flow by an investor of PIC’s quality underscores the best-in-class design and delivery executed by Lincoln MGT. This continues the JV’s track record of attracting institutional capital to the landmark Station Hill development.”
CBRE advised PIC on the transaction.
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