In an ambitious move poised to significantly impact the Build to Rent (BTR) sector, Placefirst and Strata have partnered to deliver over 500 single-family housing (SFH) BTR homes by 2028. This collaboration, facilitated by KPMG Corporate Finance’s advisory services, marks Placefirst’s first foray into the private sector. The joint venture’s initial project, a £31.5 million scheme, is part of Strata’s larger Desire development near Thorpe Park in Leeds, and is set to be completed by May 2025.
A Strategic Growth Initiative
Initial Phase and Accommodation Types
Central to Placefirst’s growth strategy in the UK, the partnership focuses on aligning with quality housebuilders executing projects that achieve scale and speed without compromising long-term value and sustainability. The initial phase of this significant collaboration entails constructing 128 homes, a mixture of two-bedroom townhouses and three- and four-bedroom semi-detached homes, designed to cater to diverse resident needs. These homes, featuring varied spaces and layouts, will be managed and maintained by Placefirst, ensuring consistency in quality and service.
In addition to the strategic collaboration, the venture aims to set a benchmark in the BTR sector through its diverse design and robust management capabilities, enhancing residents’ living experience. Placefirst’s meticulous approach in managing these homes underscores their commitment to not only expanding the housing stock but also ensuring that each property meets high standards of maintenance and care. This joint effort underscores the importance of a well-coordinated partnership in achieving large-scale housing goals while maintaining a focus on sustainability and resident satisfaction.
Commitment to High Standards
Gemma Smith, CEO of Strata, articulated that this partnership fits seamlessly with Strata’s evolution as a multi-tenure home builder, emphasizing their unwavering commitment to delivering high-quality and energy-efficient homes, regardless of ownership status. Smith highlighted the integral role of maintaining the signature Strata style both inside and out, ensuring these homes meet the expectations of residents. This commitment to quality is not just about aesthetics but also about creating functional and efficient living spaces that adhere to the highest standards of modern construction.
By leveraging Modern Methods of Construction (MMC), the homes in the Desire development will utilize timber, known for its superior thermal insulation properties. This approach not only promotes energy efficiency but also significantly reduces living costs, thus achieving an EPC B rating. Additionally, the development’s strategic location, a mere five miles from Leeds city center, offers residents the opportunity to enjoy the vibrancy of urban life while also benefiting from the nearby greenery of Temple Newsam and Roundhay Park. This balance between urban convenience and natural tranquility is a distinctive feature of the Desire development.
Enhancing the Rental Market
Addressing Housing Quality and Stability
Anna Hwang, Chief Investment Officer of Placefirst, emphasized their mission to enhance the quality of rental homes in response to the common issues of poor-quality housing and unstable tenancies that plague the UK rental market. Hwang underscored that this joint venture plays a crucial role in delivering sustainable homes at scale and improving living conditions for renters, thereby fostering long-term, community-centric neighborhoods. This approach not only addresses immediate housing needs but also contributes to creating sustainable living environments that stand the test of time.
The development marks Placefirst’s second neighborhood in Leeds, following the success of Cross Heath Grove. It signifies a significant milestone for Strata in embracing an innovative business model that supports multiple tenures. The collaborative framework agreement between the two companies has also earmarked a further 221 homes for future delivery across the UK, showcasing the partnership’s broad scope and ambition. This strategic planning underlines their commitment to addressing ongoing housing demands efficiently and sustainably.
Long-Term Objectives and Community Focus
In a groundbreaking initiative poised to revolutionize the Build to Rent (BTR) sector, Placefirst and Strata have entered into a collaboration to deliver over 500 single-family housing (SFH) BTR homes by 2028. This strategic partnership, guided by KPMG Corporate Finance’s expert advisory services, represents Placefirst’s debut venture into the private housing sector. The joint initiative’s inaugural project involves a substantial £31.5 million investment and forms a crucial part of Strata’s extensive Desire development located near Thorpe Park in Leeds. Slated for completion by May 2025, this scheme is expected to set new standards in the BTR market. The collaboration between Placefirst and Strata aims to meet the increasing demand for rental housing while offering high-quality living spaces in a prime location. By leveraging their combined expertise and resources, both companies anticipate making a significant contribution to the housing market, enhancing the rental experience, and providing sustainable housing solutions for families.
