Hearthstone Investments, a specialist fund manager in UK private rented housing, has announced the launch of its new Hearthstone Residential Fund. The fund provides institutional investors with a further opportunity to invest in the UK private rented housing sector.
The fund has a target initial close of 70m. It will follow the same investment strategy as Hearthstones Residential Fund 1, which closed in 2019 with secured equity commitments of just over 200 million, and Hearthstone Residential Fund 2, which closed in 2021, raising 152 million.
An important difference is that the new fund has a semi open-ended evergreen structure, with opportunities for investors to top-up their holdings or to reduce exposure if their needs change.
As with the two previous funds, it will provide institutional investors with an opportunity to strengthen their environmental and social credentials.
Homes within Hearthstones portfolio are energy-efficient, with carbon emissions per unit averaging just 1.3 tonnes per annum compared with the average UK home of 6 tonnes. The new fund will seek to make further progress towards carbon neutrality and energy efficiency.
Hearthstones homes are aimed at providing groups such as key workers and young families on average incomes with a valuable opportunity to enjoy high-quality, well-maintained homes in attractive locations. Institutional standards of property management can deliver a fairer, more secure and more professional experience for residents than many other private rented homes.
Andrew Smith, Chief Investment Officer of Hearthstone Investments, says: The launch of Hearthstone Residential Fund provides institutional investors with another valuable opportunity to benefit from the same highly successful strategy of our previous funds. Not only will income be protected and enhanced through active asset management, important ESG criteria will be embedded into the investment process which centres around raising the standards of homes available to residents in the UKs private rental market.
Hearthstones 10-year track record of investing in and managing a portfolio of over1,800 homes nationally will ensure that the fund benefits from the strongest possible experience and expertise available in todays private rental sector.
Hearthstone Investments is an investment manager focused entirely on private rented housing in the UK.
Across a range of funds and segregated mandates, Hearthstone Investments manages capital on behalf of UK Local Government Pension Schemes, as well as other institutional and private investors. The team oversees an income generating portfolio of over 1,800 homes across England, Wales and Scotland with the aim to deliver resilient income and capital growth for investors.
Investments by Hearthstone Investments have increased the provision of energy efficient and well-maintained rental homes affordable to tenants in areas with an undersupply of good quality rental housing. Homes managed by Hearthstone Investments are rented by residents on average salaries, many of whom are key workers.
Hearthstone Investments is committed to working with housebuilders in the transition towards net zero. Residential assets managed by Hearthstone Investments emit an average 1.3 tonnes of CO2 annually, significantly below the national average of 6 tonnes.
A pioneer in the sector with its first fund launched in 2012, the team at Hearthstone Investments brings a decade of experience and a demonstrable track record. Its success is based on long term relationships with investors, residents, housebuilders and agents.
Hearthstone Investments partners with LATCH (Leeds Action to Create Homes) as its corporate charity partner. LATCH purchases derelict houses in deprived areas of Leeds and refurbishes them to provide accommodation for the homeless and other people in need. For further information, visit https://www.hearthstone.co.uk
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