Waypoint has launched its UK ‘Waypoint Affordable Single-Family Housing Fund’ focused on new build, affordable single-family housing. The vehicle will be kick-started with a £150m seed portfolio and targets potential annual returns to investors of over 15%.
The new fund, which will be delivered in partnership with Wise Living, will build upon Waypoint's expertise in real estate investment and asset management and Wise Living’s extensive experience as a specialist single-family Build-To-Rent (BTR) provider. Wise Living is amongst the most experienced and successful teams in the sector, having been operating for over ten years and delivering over 7,500 new homes with a GDC of £1.9bn for many of the leading BTR investors.
The fund's seed portfolio is primed for immediate on-site commencement and reflects a substantial financial dedication to the sector and offers lucrative opportunities for investors capitalising on the current market. In total, Waypoint has identified an extensive pipeline of 1,979 homes across 25 sites, estimated at around £570m in development costs. Emphasizing a family-oriented approach, the portfolio predominantly consists of houses (90%), supplemented by apartments (10%), aligning with market trends and Waypoint's commitment to family-centric living solutions.
With a commitment to sustainability and ethical investment, the fund has a strong focus on environmental, social, and governance (ESG) criteria and will develop new single-family housing schemes that are affordable and cater to the needs of key workers and those on average income.
Fund Manager, Paul Dennis-Jones of Waypoint, said: "There is a pressing need for all forms of quality housing in the UK, and this fund has been created to help the thousands of hard-working individuals and families who are looking for a place to call home. Demand for this is high and has been further exacerbated by the current turmoil in the single-family rental sector as more and more private landlords exit, making the untapped opportunity even stronger. This provides a very healthy, secure and long-term sector for institutional investors to now get involved at a cyclical point where yields are at a historical high.
"By prioritising properties in locations with easy access to essential local amenities and employment zones, we aim to provide not just bricks and mortar, but homes that support the well-being and economic stability of our tenants. This approach is not only socially responsible but also aligns with our goal of delivering sustainable, long-term returns to our investors," he added.
Paul Staley, Managing Director at Wise Living, added: “The ‘Waypoint Affordable Single-Family Housing Fund’ presents a compelling investment opportunity, comprising significant scale, strong developer partnerships, and well-established predictable returns. This approach is built on a solid foundation which not only gives investors significant and predictable returns but also helps to address the critical need for high-quality and professionally managed affordable housing in the UK. We have years of experience in helping investors to make the most of the opportunities that are available in the market, and look forward to helping to deliver more projects through this new fund.”