Urban Splash UK Residential (USUKR), has reported significant growth for the year ending March 2024.
The total portfolio value of the Manchester-based fund increased by 25% to £93.3m, driven by £18.4m in property acquisitions, including the largest to date at East Street Mills in Leeds.
This acquisition expanded the portfolio by more than 30% and added £1.1m in rental income.
Growth this year was supported by the Fund’s first finance facility, a £20m revolving credit facility (RCF) with Barclays.
The Fund recorded high occupancy rates throughout the year, with financial occupancy at 97.1% and rent collection at 99.4%.
The Urban Splash Residential Fund was established by SURE Capital Partners in June 2017 to acquire design-led sustainable homes in urban regeneration areas across the UK, through the Manchester-based developer Urban Splash pipeline, strategic partners and opportunistic purchases.
Akeel Malik, a Partner at SURE Capital Partners, the investment advisor to USUKR, said: “FY24 has been a significant year of growth for us.
“We are advancing with acquisitions and offering more people the chance to live in brilliantly designed homes across the country.
“Our Fund now owns 435 properties in cities like Manchester, Birmingham, Sheffield, Bristol, Cambridge, and Leeds. These results position us well for the coming year.”
Other financial highlights include a 10.2% increase in operating profit to £2.3m and a 45% rise in turnover to £4.8m, partly driven by 5.3% like-for-like rental growth.
The results also reflect market stability, with CPI falling to 3.8% – from 8.9% in 2023 – and the Bank of England’s interest rate holding steady at 5.25% from August 2023 to March 2024.
Akeel added: “Our access to long term patient capital allows us to continue investing in this stable market, advancing our ambition to create an institutional-scale portfolio of design-led rental homes across the UK.
“We are actively looking for strategic partners that we can work with to deliver high quality homes for rent.”
The Fund offers initiatives including 100% green energy as standard, ethically sourced welcome gifts, and a community platform called Ark offers a resident app with local business discounts.
Akeel said: “These initiatives align with our emphasis on ESG and social impact, making it easier for our customers to live sustainably while securing better returns for investors.”