KKR and Apache Capital Form JV for UK BTR Multifamily Developments

Posted on 11/24/2021

KKR and Apache Capital, an investment manager focused on U.K. residential real estate, announced that KKR and Apache Capital have established a joint venture to create a UK build-to-rent (BTR) multifamily housing investment platform. KKR and Apache Capital will invest £610 million to fund the delivery of BTR projects in core cities across the U.K. that will be developed and operated by Moda Living, with sites already identified in Birmingham, Brighton and Hove, and London. KKR’s investment was made via KKR Real Estate Europe Partners Europe II, a US$ 2.2 billion fund dedicated to value add and opportunistic real estate investments in Western Europe.

The developments will deliver over 4,000 apartments that are purpose-built and designed for rent as part of a £1.7 bllion development pipeline.

The joint venture between Apache Capital and KKR follows the success of Apache Capital and Moda’s second operational multifamily BTR scheme, Moda, The Lexington, in Liverpool, where 60 percent of apartments are already leased two months after launch. Moda’s flagship scheme, Moda, Angel Gardens, in Manchester, is fully stabilized, having set new sector benchmarks for rents achieved.

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