JLL advises ECE in £400m entry to the UK multifamily market with acquisition of major build to rent schemes

March 03, 2020

London, 3 March 2020 – JLL has advised German real estate investor ECE on the acquisition of three multifamily schemes from Dandara in a £400 million deal. The transaction marks ECE’s debut in the UK multifamily market and comprises of 2,063 build-to-rent homes across three key city centre schemes: Aston Place in Birmingham, Chapel Wharf in Manchester and Leodis Square in Leeds. 

ECE’s acquisition of the three sites encompasses 324 units already completed at Aston Place, and a further 1,739 units under construction and due to be completed later this year at the other two sites. Dandara will continue to manage the developments under its Dandara Living brand. Its management portfolio consists of over 4,000 units across the UK.

The European multifamily market has been on a continued growth trajectory since early 2019, with JLL’s recent multifamily bulletin recording €55 billion total investment in multifamily assets on the continent last year. This deal is one of the most significant transactions undertaken to date in the UK and positively reflects the strength of the UK’s market offer.

Simon Scott, Lead Director, UK Living Capital Markets, JLL, said: “We were delighted to be able to assist ECE in such a notable transaction for the UK multifamily sector. Their commitment at this time recognises not just the rare value of such a quality portfolio of scale, but also takes note of the fundamental supply demand dynamics in the UK rental market, which far outweigh any political uncertainty that the market has been facing in recent times. We look forward to assisting ECE in growing their exposure to the UK multifamily sector.”

Henrie W Kötter, Chief Investment Officer, ECE, commented:While many investors have been shying away from taking any material investment decisions in this sector in 2019 due to the lingering uncertainty around Brexit, we felt this to be a good time to invest given the underlying positive fundamentals.

“The portfolio offers the opportunity of a sizable entry into the UK market, providing a great starting point to eventually build an ECE platform. Birmingham, Manchester and Leeds benefit from a large share in the most relevant age bracket BTR appeals to, positive employment figures, and in consequence a remarkable demand for modern and professionally operated BTR apartments.”

About JLL

JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $18.0 billion, operations in over 80 countries and a global workforce of more than 93,000 as of December 31, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated.