Residential property is becoming increasingly attractive as an asset class for large funds and quoted property companies. Where it is possible to acquire large blocks of residential property it can prove an efficient to purchase these for the Private Rented Sector (PRS) model or the Build to Rent (BTR) model.
PRS schemes are based largely on a housing product that could be sold in the traditional marketplace, whereas BTR schemes are specifically designed with tenants in mind and so there may be different or extended common facilities that are there for the tenants to use i.e. to satisfy customer demand for the residential product.
Both models allow developers to dispose of a whole or part of development to a single purchaser and so can be attractive in order to support the financial viability of a development. Often such sales will be transacted at an early stage by way of a forward funding or forward sale agreement which enables the funding of the construction of the development and replaces the need for traditional development finance.
Our specialist lawyers can assist with all aspects of PRS/BTR developments.