Hearthstone Investments obtains regulatory approval to market its UK Hearthstone Residential Fund in the Netherlands
Hearthstone Investments, a fund sponsor focused on affordable private rented housing in the UK, received regulatory approval to market its Hearthstone Residential Fund (“HRF”) to institutional investors in the Netherlands.
Hearthstone Investments manages assets on behalf of UK Local Government Pension Schemes, as well as other institutional investors and oversees an income generating portfolio of over 1,800 homes across the UK.
The Hearthstone Residential Fund will follow the same investment strategy as the fully deployed Hearthstone Residential Fund 1 (final close in 2019 at £200m), and Hearthstone Residential Fund 2 (final close in 2021 at £152m). Hearthstone Investments specialises in building regionally diversified portfolios, a mix of clusters of houses and low-rise apartment blocks outside prime (urban) areas. Unlike its closed-ended predecessors, the new fund has a semi open-ended “evergreen” structure.
Cedric Bucher, Chief Executive Officer at Hearthstone Investments and Director of Hearthstone Investments (GP3) Limited comments: “We are looking forward to discussing the investment opportunity in UK residential property with Dutch investors who have a long-established track record of investing in housing. The UK private rented sector with over 5 million households is one of the largest in Europe, but the proportion of institutional ownership is still relatively low. We believe exposure to UK residential property offers Dutch investors an opportunity to diversify their real estate holdings in a sector with strong long-term fundamentals.”
Hearthstone Investments, via its Alternative Investment Fund Manager, Langham Hall, notified the Dutch regulator under the National Private Placement Regime (NPPR). As part of the application, the Hearthstone Residential Fund will be designated as an Article 8 fund under the Sustainable Financial Disclosure Regulations (SFDR). As with the two previous funds, it will provide institutional investors with an opportunity to combine investment returns with a positive environmental and social impact. Acquisitions by Hearthstone Investments have increased the provision of energy efficient, well-maintained rental homes affordable to residents on average salaries, targeting areas with an undersupply of good quality rented housing.
