Cording secures second deal for new £400 million UK private rented sector fund

Cording Real Estate Group, the European real estate investment and asset management firm, has secured the second deal for its new £400 million Cording UK Residential Investment Fund, which invests in the private rented sector (PRS) on behalf of Continental European investors.

The fund has agreed to forward fund a build-to-rent development in Warrington by High Street Group for around £40 million. Located in John Street, in the heart of the Stadium Quarter regeneration area, the development will provide 362 one and two-bed apartments. Construction will commence on site this month and is expected to be completed in early 2021.

Charlie Miller, Director of Residential Acquisitions at Cording, said: “The site’s location, opposite the train station and within walking distance to Warrington’s town centre is very attractive for future residents and commuters to Liverpool or Manchester. Our project forms part of a wider regeneration of Warrington’s Central Station and is one of the first large developments to take place in the town for more than 10 years”.

The Cording UK Residential Investment Fund was launched in August 2018 with equity commitments of more than £100 million from German institutional investors. Cording is expecting to raise an additional £150 million of equity commitments from Continental European institutional investors. Using leverage, the fund will have £400 million to create a diversified portfolio of PRS assets, delivering sustainable and stable distributions over a long-term holding period.

Using a unique and comprehensive research approach Cording focuses on the lower-to-mid end of the market and has identified regional cities and locations outside Central London where demand for rented accommodation is strong and set to grow and where existing stock is predominantly old and in houses of multiple occupation (HMOs).

Cording was advised by Osborne Clarke on the legal aspects of the deal and EY on the tax structuring. The architect is Triangle. The AIFM of the Fund in Luxembourg is Pancura SA, while Aztec Group acts as central administrator.