Savills Investment Management, the real estate investment manager subsidiary of Savills, has bought Pitmore, the UK development and build-to-rent specialist, as it launches a major UK residential BTR platform.
The strategy initially aims to raise £200 million for a partnership focused on the sector.
Savills IM said the senior partners at Pitmore, Vittorio Davico, Tommy Adeane, Peter Wyatt and Craig Mulholland, will bring significant development, transactional and asset management experience, working in the sector since 2012.
The Land Managers, the real estate investment arm of JL Family Office, will be a major cornerstone investor in the UK platform.
In single family housing, the Pitmore team has created a partnership with Goldman Sachs, and will continue to advise on some of the largest housing development sites in the UK, with potential gross development value of over £3 billion. The combined teams will allow Savills IM to advise on and create a range of residential products across the risk return spectrum, the company said.
The first new product is the launch of Savills IM’s UK build-to-rent strategy, which it said will build on Pitmore’s pipeline. The strategy aims to develop up to £500 million of "quality, sustainable housing in both single and multifamily assets with a strong focus on regeneration areas and master-planned schemes".
Alex Jeffrey, chief executive of Savills IM, said in a statement: “This acquisition and launch of the build to rent strategy is in line with our strategy to deepen specialist operational expertise in chosen sectors. Residential is a key part of this based on our conviction that institutions will benefit from increasing exposure to the sector over the long-term. We have great faith in the capability of the Pitmore team and we welcome them to Savills IM.”
Jon Crossfield, head of strategic partnerships and living at Savills IM added: “[Pitmore] will be instrumental as we continue to build our platform and create a range of products to best serve both existing and new clients. As part of Savills, we are building a platform that will be uniquely placed to both access opportunities and deliver returns in the sector.”
Vittorio Davico added: “We are very excited to join the Savills IM family and to be able to launch the new build-to-rent strategy so quickly. We are already working on a number of attractive seed assets with a significant deliverable pipeline to follow.”
Pitmore has worked principally as an operating partner across the entire range of responsibilities across a project, from planning to delivery, at developments such as Kitchener Barracks and Chatham Quays.