Urban Splash residential fund concludes year two with strong profits and investor returns of 12%
The Urban Splash residential fund – Urban Splash UK Residential LLP (‘USUKR’) – has announced a successful second year of trading, reporting annual investor returns of 12%, reflecting a 3% paid dividend and 9% capital gain, as well as 94% average occupancy across the nationwide portfolio.
The net asset value of USUKR during the year, which covers the trading period ending 31st March 2019, was £16.3m – more than double the £6.9m valuation in 2018. This was driven by a 15% valuation uplift on the existing portfolio, continued acquisitions, and average realised gains of 31% from disposals.
A soft launch closed in February 2019 and was oversubscribed; it saw an initial £20 million of seed funding secured from investors across the UK. In the past year, the portfolio has grown significantly, acquiring 50 homes and taking the total of the company’s diversified regional private rented sector (‘PRS’) portfolio to 123 properties located across Manchester, Sheffield and Bradford. The acquisition strategy is focused on, but not limited to, Urban Splash properties.
Former UBS analyst Akeel Malik leads the business; announcing the figures he said: “We are delighted to report these results, which show our successful performance to date as well as a pleasing uplift in values across the portfolio.
“It’s wonderful to have been given the opportunity to grow a fund like this within the Urban Splash family of businesses and we look forward to further fundraising next year; given the unrivalled experience and connections of Urban Splash in the UK regions, I would hope that we continue to outperform the market.
The fund aims to distribute dividends of 3% per annum and pursue capital and rental growth. A second fundraise is anticipated to launch in the New Year. For further information, contact Akeel Malik at Urban Splash Residential Advisers LLP (akeelmalik@urbansplash.co.uk).
