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Rent Supermarket: London To Get Megalandlord With 4,000 Homes

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London to Get Megalandlord With 4,000 Homes

Qatari Diar Real Estate Investment Co. is joining U.K. developer Delancey Real Estate Asset Management Ltd. and Dutch pension fund APG Asset Management NV to create a 1.4 billion-pound ($2 billion) home-rental business in London, with properties in the former Olympic athletes’ village and the Elephant & Castle district.

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Qatari Diar is currently developing 2,818 homes at the East Village former Olympic site in Stratford with Delancey. The Elephant & Castle project, initially comprising 374 homes as well as 272 student housing units, is being undertaken by APG and Delancey.

What about those who have already invested in BTL and student housing?

I am sure other players would like to join in as well. Will this create a 'rent supermarket' situation?

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Interesting. Doubt a strategy like this would ever gear above 50%. Which means yes they may well set new market clearing rents as required (i.e. lower).

Edited by GARCH

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Interesting. Doubt a strategy like this would ever gear above 50%. Which means yes they may well set new market clearing rents as required (i.e. lower).

While debt is mispriced cheaper than equity, it seems extremely likely they would gear up. A low-risk steady-income business gets the cheapest borrowing of anyone.

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