Urban Splash

Urban Splash Residential Fund reports annual investor returns of 11.9%

Urban Splash UK Residential LLP (USUKR) has announced it completed a third successful year of trading for the period ending March 2020, with 11.9% annual investor returns, including a 3% paid dividend.

The company also recorded a £1.4m profit (an increase from last year’s £844,000 profit), an average occupancy of 95% across the portfolio, and a rent collection rate of 94% since March.

The average acquisition price on its portfolio is £165 per sq ft.

The net asset value of USUKR tripled since its initial valuation in 2018, reaching £22.9m. 

The fund added 41 new homes to its portfolio during the financial year, taking the total to 164 homes across Manchester, Sheffield, Birmingham, Bristol, and Bradford.

Although the growth strategy is focused on Urban Splash properties, USUKR did acquire non-Urban Splash assets this year, including the redevelopment of a church into 22 apartments at The Chancel in Prestwich, Greater Manchester. 

The fund has also invested in improving the tenant experience using technology, community events, and value-add building improvements.

USUKR has announced additional fundraising plans, with Urban Splash developments at New Islington and Port Loop identified as pipeline opportunities over the next 12 months.

Akeel Malik, USUKR fund manager, said: “We are delighted to report these results, which show another successful trading period and promising figures across the portfolio.

“We fundamentally believe that residential property is a secure and resilient income stream, and an appropriate wealth preservation strategy in the current uncertain times. 

“Notwithstanding the impact of Covid, we have maintained our growth strategy this year — investing in the tenant experience and continuing to make acquisitions across the country where there is a clear undersupply of good quality, affordable rental homes in attractive urban locations.  

“Looking ahead, we believe that there are even more attractive acquisition opportunities to come, and our team is applying 27 years of expertise and industry connections to source deals and add even more value as we work through the coming months.”

Tom Bloxham, chairman at Urban Splash and founder investor in the fund, added: “As a result of Covid, people have been spending more time at home, which has highlighted the need for more flexible and liveable spaces. 

“Urban Splash offers design-led homes, surrounded by outdoor space, which are energy efficient and green by default.”

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