JLL acts for QuadReal in acquisition of ‘Project Harmony’ from Realstar

JLL has acted for Canadian real estate investor, QuadReal Property Group, as it expands investment into the UK Living sector with the acquisition of ‘Project Harmony’ from Realstar. The portfolio consists of six PRS assets and two PBSA schemes for circa £580m.

The portfolio is one of the largest collections of completed Build to Rent and PBSA stock in Central London, complemented by a prime PRS asset in Manchester city centre. The portfolio comprises around 1,000 BTR units and close to 400 student beds, across eight assets. Seven of these are completed and stabilised, with the 105-unit scheme in Stratford due to reach practical completion in Q1 2021. The acquisition marks a major milestone in the UK Living sector and is one of the first portfolios of purpose-built PRS and PBSA stock to trade in the UK.

QuadReal is a global real estate investment, operating and development company and are already an established partner of Realstar on six of its developments in London. The deal also sees QuadReal acquire a stake in Realstar’s UNCLE management platform, which will continue to manage the assets. 

JLL’s Living Capital Markets, PRS Management and Debt Advisory teams worked together to advise QuadReal on the transaction.

Simon Scott, JLL’s lead director of Living Capital Markets, commented: “We’re pleased to have  been able to work with the QuadReal team to secure this rare, prime portfolio acquisition, which already includes income producing assets which we know was incredibly sought after in the market.”

JLL‘s Debt Advisory team also played a key role in supporting the transaction. “We were pleased to provide advice in the assumption of several loans, and the underwriting of several new loans” added Michael Kavanau, Head of JLL’s Debt & Structured Finance, EMEA. “There was keen interest from the lending community on this portfolio given the high conviction lenders have in the sector. JLL has a particularly strong Debt Advisory practice in this space, and our joined-up approach with our broader Capital Markets teams is quite unique”. 

Commenting on the investment, Jay Kwan, managing director of Europe at QuadReal added: “This transaction represents the natural evolution of QuadReal’s investment strategy in Europe. We are deepening our exposure to a sector we believe in, and more solidly aligning ourselves with a world class partner on the operating side of the business. We are well positioned to continue expanding UNCLE’s reach in the UK.”