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Ortega’s Pontegadea buys 219 Baker Street in UK BTR deal
The deal values the 219 Baker Street building at £150M, with 86 high-end rented apartments and a reported 4% yield.
Inditex founder Amancio Ortega is expanding into UK build-to-rent housing through his real estate vehicle Pontegadea UK, which has bought its first UK rented residential asset in a £150M transaction, according to Bisnow.
Pontegadea UK purchased 219 Baker Street in the West End from specialist investor and developer Ridgeback Group earlier this year. The building is set up as 86 high-end rented apartments and the deal is described as reflecting a 4% yield.
Bisnow said investor caution has increased around funding new BTR development in a higher-cost environment, but capital is still flowing into existing BTR assets as limited new supply is expected to support rents.
The Grade II-listed art deco building was constructed in 1932 as headquarters for UK lender Abbey National, later converted to residential in 2004 and upgraded by Ridgeback. Pontegadea’s UK real estate portfolio totals more than £2.7B, Bisnow added, and it has made other recent purchases including an 850,000 square foot Amazon warehouse near Liverpool for £81M and an €800M purchase of the Capital 8 office building in Paris.