Vistry sells 1,750 new homes for private rental

UK housebuilder Vistry Group has agreed a deal to sell approximately 1,750 new build homes to private equity firms Blackstone Real Estate and Regis Group.

Encompassing 36 Vistry developments across the South East of England, the portfolio will be managed by Leaf Living, a provider of private rented sector housing which is backed by funds managed by Blackstone and Regis.

First completions under the agreement are expected by the end of June 2024, with the majority of homes due to be completed within the next two years.

“By working in partnership with organisations like Leaf Living we can maximise the number of high-quality homes we deliver every year,” said Greg Fitzgerald, Vistry Group chief executive. “This agreement supports our differentiated business model, with the certainty provided by the pre-selling of homes enabling us to accelerate our build programmes, guarantee work for our supply chain, reduce sales and build costs, and create vibrant new communities.”

Vistry is on track to complete at least 10% more homes this year to help address the UK’s housing shortage.

James Seppala, head of European Real Estate at Blackstone, said that institutional private capital can play an important role in boosting the supply of high quality housing across the UK, particularly in the private rented sector.

“Partnerships such as these can meaningfully accelerate the delivery of new homes and help alleviate structural undersupply across the sector,” Seppala added.

In November 2023 Vistry signed a deal with Leaf Living and affordable housing provider Sage Homes for 2,915 new homes, to be delivered by the first quarter of 2027.

Sage Homes is also backed by Blackstone-managed funds and Regis.