British housebuilder Vistry said on Tuesday it has agreed to terms with Blackstone Real Estate and Regis Group for the delivery of a portfolio of 1,750 new homes worth a gross development value of 580 million pounds (US$742.3 million).
Kings Hill, UK-based Vistry said the portfolio, concentrated in the southeast of England, would be managed by private rented sector housing provider Leaf Living, which is backed by funds managed by private equity firms Blackstone and Regis.
The deal comes at a time when a delay in UK interest rate cuts has tempered hopes of a stronger recovery in the housing market. Vistry sounded more optimistic than its sector peers in recent times on the back of resilient demand for its affordable homes, mainly from housing associations and the private rented sector.
The first completions under the agreement with Blackstone and Regis are expected by the end of June 2024, with the majority of homes expected to be completed within the next two years, Vistry said in a statement.
Last month, Vistry raised its annual homebuilding target by about 3.0 per cent to over 18,000 units after rivals, including Taylor Wimpey and Persimmon, warned of subdued market conditions this year.