- What Moorfield has acquired a portfolio of 77 show homes from housebuilder Avant
- Why Sale-and-leaseback deal on average three-year term
- What next Homes to be sold by Moorfield on lease expiry
Moorfield Group has bought a portfolio of 77 show homes from housebuilder Avant Homes for £20m in a sale-and-leaseback deal.
Acting on behalf of the Moorfield Real Estate Fund IV, Moorfield has bought the 93,000 sq ft portfolio from the privately-owned housebuilder in a deal which will see all 77 show homes leased back to Avant on an average three-year term.
Once this expires, Moorfield will either sell the homes on the open market or offer them for private rent.
The portfolio is made up of two, three, four, and five-bedroom detached and semi-detached show homes delivered by Avant, which operates in Scotland, the North East, Yorkshire, and the Midlands.
Moorfield Group and Avant Homes have previously worked together, with Moorfield having acquired the developer’s Edinburgh city centre £750 million mixed-use Quartermile scheme in 2013 for an undisclosed sum.
Charles Ferguson-Davie, chief investment officer of Moorfield Group, said: “Despite the volatility caused by the COVID-19 pandemic, we remain convinced that the residential sector will continue to be a resilient asset class, providing ongoing opportunities to generate outperformance on behalf of our investors. We have pioneered investment into a range of residential use classes and this innovative transaction provides our investors with further diversification.”
Avant Homes chief operating officer, Mark Mitchell, added: “COVID-19 has presented the housebuilding industry with many challenges, which we have responded to dynamically, with the safety and wellbeing of our people as our first priority. Looking ahead, we remain committed to continuing to execute against our growth strategy, underpinned by the resilience and agility of our business, the excellence of our product and the commitment of our people.
“Moorfield Group’s investment is testament to their belief in our ability to continue to succeed. As part of our growth strategy, we are exploring a number of other opportunities with Moorfield Group and hope to be able to reveal more detail about what they are in due course.”
Moorfield Group was advised on the transaction by Cushman & Wakefield and Shoosmiths.