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Investment Case Neighbour is seeking equity to help us bring to market well designed, affordable and fully managed apartment-living communities. We want to be the industry leader for private rentals in the UK, so we have created a brand that stands for apartment living at its neighbourly best. The team behind Neighbour previously delivered a 20,000-unit private rentals investment vehicle in Scandinavia and Germany.
All Neighbour assets will be acquired off-plan through forward funding – with no direct development risk. We are targeting near-prime locations with a strong local economy, good transport connections to central London or other major city centres and strong projected capital and rental value growth over 5-10 years.
Neighbour aims to be the UK’s industry leader for private rentals – by offering rented homes that are fully managed, highly affordable and hassle-free to live in.
We plan to acquire around 10,000 rental units over the next five years, starting with four sites in Greater London during 2015.
£250 – £650
Per square foot
capital values
£15 – £30
Per square foot
rented values
per annum
9.16%
Ungeared IRR over
the development
and hold period
16.62%
Equity IRR over
the development
and hold period
6.78%
Gross yield
on stabilization
2.92x
Equity multiple
65%
Senior debt LTC
during forward
funding phase
50%
Senior debt LTC
after stabilisation
(approximate)
5.26%
Net yield on stabilisation
For a full investor briefing and information about our planned pipeline projects, please contact us
