Annington accelerates private rental drive with £47m deals
Following its acquisition of a £75 million portfolio from St Modwen in March of this year, Annington, one of the largest owners of residential property in the UK, has taken another step in its drive to expand into the UK’s fast-growing private rented sector with the purchase of two portfolios totalling 177 properties and over £47 million.
In two separate transactions, Annington has completed the purchases of 104 homes from Mill Group’s Oak Portfolio for £23.8 million, and 73 homes from Taylor Wimpey for £23.5 million. Both portfolios reflect Annington’s commitment to provide affordable family homes for the UK’s most critical workers, with a particular focus on high quality houses with their own gardens. In line with Annington’s private rental strategy, all are located in attractive areas across the south and south-west of England.
In the first of the transactions, Annington has acquired 65 two, three and four-bedroom houses from the Mill Group’s Oak Portfolio, and 39 two-bedroom flats. The properties, all occupied, are in Bristol, Gloucester and Hampshire.
The portfolio acquired from Taylor Wimpey comprises 53 houses and 20 flats in locations across the south of England. All are currently under construction and form part of five Taylor Wimpey developments in the South in Reading, Bristol, Cambridgeshire, Oxfordshire and Milton Keynes.
Annington already owns over 40,000 homes valued at £7.4 billion, and has more than 20 years’ experience as a private landlord. Following a £4 billion refinancing last year, it is well placed to expand in the PRS market.
Annington will continue to invest in its private rented portfolio, building on its expertise and capitalising on the high growth and strong potential of this market.
James Hopkins, Chief Executive Officer, Annington commented:
“These two purchases support Annington’s strategy to build greater scale in private rented housing. Our £4bn refinancing last year ensures we have the balance sheet to deliver further growth and these acquisitions build on our purchase of more than 200 homes in March. As one of the few existing landlords with both significant scale and a track record in this space, and with a deep understanding of both local and national markets, we feel we are well placed to make a difference in addressing the UK’s housing challenges. We will continue to actively pursue further opportunities.”
The UK housing market is undergoing a structural shift from owning to renting, with private renters now comprising 20% of all households in England, more than double the number of households that were renting in 2002*. The UK Private Rented Sector (PRS) is highly fragmented, with only 2% of PRS investors owning more than 10 dwellings**. The affordability of home ownership is a major issue and there is significant demand for experienced and professional landlords of scale to provide high quality, affordable homes for rent in the UK.
* Ministry of Housing Communities and Local Government; English Housing Survey, Headline Report 2016-17
** ONS; UK Perspectives 2016: Housing Ownership; IPF; The Size and Structure of the UK Property Market: End 2016
Brunswick Group LLP
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Tel: +44 (0)20 7404 5959 Tim Danaher, Alison Kay
Annington is one of the largest private owners of residential property in the UK with over 40,000 homes across England and Wales. To date, we have helped over 17,000 people purchase their own home, many of whom were first time buyers, service personnel and key workers.
Annington’s portfolio is unique in the private rented sector. While our homes range in style and size from one bedroom apartments through to eight-bedroom houses, the majority of our properties are detached, semi-detached and terraced family homes with gardens. Annington’s developments are often set in much more open space than you might find elsewhere, especially when compared to modern developments.
Annington has more than 20 years’ experience as a private landlord and specialises in family homes. We are one of the few private sector organisations with experience at scale in the Private Rented Sector (PRS) and believe that our model can play an important role in addressing the UK’s current housing shortage. Annington was formed in 1996 with the purchase of 57,434 homes from the Ministry of Defence (MoD) and properties leased to the MoD to house military families continue to represent a large proportion of our portfolio.« Back to news page