Bringing home a competitive deal in the UK Living sector with the full spectrum of real estate expertise

“Our acquisition of Project Harmony represented the natural evolution of QuadReal’s investment strategy in Europe. We continue to deepen our exposure to a market and sector we believe in, and our success on Project Harmony was supported by the strong partnership with JLL. They always bring detailed asset level insights to the table, strong guidance, and a client-first approach to service’’

- Jay Kwan, Managing Director, QuadReal Property Group.

When QuadReal Property Group, a global real estate investment, operating and development company headquartered in Vancouver, Canada , wanted to bolster its $73.8 billion asset portfolio it looked to Project Harmony - a large-scale, multi-site accommodation development across London and Manchester.

The UK’s Living real estate sector continues to go from strength to strength and attract strong demand from global investors who understand that high-quality housing and student accommodation is in tight supply.

With 399 purpose-built student accommodation units across two sites in London, and 936 build-to-rent units — five schemes in London and one in Manchester — the portfolio offered investors a unique opportunity to generate robust income and grow value over time.

Despite the portfolio's solid credentials and fierce competition, investors faced uncertainty and tight financing conditions following a period of pandemic-driven upheaval and political and economic issues in the years since.

To secure financing and deal structure for a project of this size and complexity, QuadReal looked for a global advisor who could deliver the full spectrum of real estate expertise — from research-driven insights to financing advisory — in order to accurately forecast the portfolio’s value and ensure its ability to generate income.

JLL’s Living Capital Markets, private rental sector (PRS) management and debt advisory teams worked together to advise QuadReal on the transaction.

Comprehensive background research on each asset was key to securing the deal. JLL’s global-to-local researchers conducted economic and demographic analysis, and local market research, in collaboration with other JLL experts across residential, student accommodation, private rental management, and debt advisory.

Armed with this due diligence, the investment team generated a report with a rigorous pricing schedule, financial model, and a growth forecast for the entire portfolio, which helped the investor to mitigate market uncertainty and secure a deal in excess of £580 million.

The acquisition marks a major milestone in the UK Living sector as one of the first portfolios to combine private rental and student accommodation.

Unrivalled insights and cross-sector expertise supported QuadReal‘s confidence to commit to the deal and increased their footprint within the UK’s thriving living real estate sector.

Talk to Capital Markets at JLL