Large London rental portfolios change hands

BauMont Real Estate Capital and its operating partner Addington Capital have acquired a £99m residential portfolio from a private investor. In total the portfolio comprises 318 houses and apartments in East London, most leased to young professionals and families.

This is the second major London residential property portfolio bought by the two companies. In October 2019 they paid around £37m for a portfolio of 182 apartments of mainly converted Victorian and Edwardian houses mostly in the borough of Croydon, South London.

The latest acquisition is of properties in Walthamstow and surrounding areas including Leyton, Leytonstone, Barking and South Woodford. It includes both Victorian and post war accommodation, as well as purpose-built apartments on the sought-after Warner Estate built at the turn of the last century.

Addington’s sister company AddLiving, a residential management business, will provide property management services to the portfolio, with Addington Capital as asset manager. The properties will be held for income and capital growth and refurbished to improve energy efficiency and to meet the requirements of the generation of people moving into this area of East London.

‘Given its characteristics, the portfolio will be resilient and offer well-located, good quality and affordable homes in an undersupplied segment of the market. We are delighted to be working with Addington again who are experienced in managing this type of portfolio and have an excellent track record’, said BauMont’s Harry Wentworth-Stanley.

For Addington Capital, principal Matthew Allen said the company was ‘continuing to look for value-add opportunities in the Greater London residential markets, where we can achieve portfolio discounts and can invest to modernise and improve the living accommodation. We are primarily looking at typically older stock (Victorian or pre-war) in Zones 3 to 6 and in emerging and gentrifying locations’.

• Meanwhile the London Assembly Housing Committee is meeting this week with guests to discuss alternative methods for expanding social housing stock in London through use of either existing homes or converting buildings.

As of April 2020, there were 246,575 households on local authority waiting lists and 60,830 families in London were relying on temporary accommodation. ‘With demand for social housing high and likely to further increase, alternatives to expanding social housing stock should be considered’, said the committee.

‘Construction of new social homes is vital to meeting demand in London, but ‘non-construction’ methods could potentially expand the supply of social housing and help alleviate housing pressures. The Mayor’s Right to Buy Back fund will be discussed along with other methods, including tackling London’s empty homes.