KKR acquires three BTR properties in UK for over €117m

Global investment firm KKR and its European residential platform, Inhabeo, purchased The Slate Yard, a collection of three Build-to-Rent apartment buildings in Manchester.

The properties were purchased from UK financial services group L&G for over £100 mln (€117 mln).
The sustainable development boasts 424 residential units across 25,084 m2, featuring amenities like a gym, lounges, and co-working spaces. 
Its prime waterfront location near Manchester's central business district caters to the city's growing professional population in a market with limited housing options.
Mark Ekinde, principal in KKR’s European Real Estate team, said: “Through the acquisition of The Slate Yard, we are pleased to further our presence in Manchester and continue to grow our UK residential portfolio. Catering to one of the UK’s largest and fastest-growing cities, these properties are well placed to meet the growing demand for high-quality, yet affordable, residential real estate. Acquiring strategically located, high-quality residential assets in major urban centres continues to be one of our main investment themes in Europe, driven by positive market trends and compelling structural dynamics.”
Dan Batterton, head of Residential, L&G, commented: “We know there’s a critical shortage of housing supply, coupled with increasing demand for high-quality rental homes in the UK. With our recently announced partnerships aimed at creating thousands of new homes across the country, this sale will allow us to continue to reinvest in the Build-to-Rent sector, delivering much-needed new homes.”
Ross Netherway, CEO of Inhabeo, added: “This acquisition marks an important milestone in the continued growth of our European living sector investments with KKR, which now exceed £500m. We look forward to building on this momentum to expand further into high-quality Build-to-Rent and Purpose-Built Student Accommodation assets across select European geographies.”
CBRE and DLA Piper advised KKR and Inhabeo, while Knight Frank and Macfarlanes advised L&G.
The Slate Yard purchase adds to KKR's growing Manchester real estate portfolio, which includes the fully-let No. 1 St Michael's development and other recent logistics and hospitality investments. This acquisition also expands KKR's residential holdings in the UK and Europe, with existing properties in London, Birmingham, Brighton & Hove, as well as Germany, Finland, and Denmark.