21 December 2021
Summary: Having launched Fizzy Living nearly a decade ago, MTVH has now fully exited the business and proceeds will be ploughed back into delivering affordable and sustainable housing.
MTVH has sold its minority stake in pioneering build-to-rent (BtR) service Fizzy Living to Greystar Real Estate Partners, a global real estate company specialising in the management of rental properties.
Launched nearly a decade ago in 2012 by MTVH, Fizzy Living was the first professionally managed, branded BtR service of its kind in the UK. It was designed specifically to service the needs of young professionals by providing good quality and well-managed accommodation.
Fizzy Living has been widely acclaimed in the industry as an outstanding operator and consistently enjoys impressive, high levels of customer satisfaction. Harnessing this success, Greystar will assume management of the Fizzy Living portfolio, which comprises nearly 1,000 homes, from MTVH, with the acquisition completed at an implied portfolio valuation in the region of £400m. As part of the transaction, the Fizzy Living brand and more than 30 employees will move across to Greystar.
The Fizzy Living assets are well-located and close to public transport in Canning Town, Lewisham, Epsom, Stepney Green, Poplar, Walthamstow, Hayes and Silvertown.
With Fizzy Living having pioneered such an offering, BtR is now the fastest growing sector in UK real estate, with supply of BtR housing having increased by over 50 percent since 2015.
As such, MTVH believes that now is the right moment to relinquish its stake and focus on delivering new and sustainable affordable housing, for which the proceeds of the sale will be used.
Over the next five years MTVH plans to build a further 5,000 new homes, whilst continuing to make significant investments in improvements to existing homes and in response to building safety requirements. The vast majority of these new homes will be for affordable rents or shared ownership.
Under the plans, all new Metropolitan Valley Thames’ homes will meet at least Energy Performance Certificate (EPC) B standard, or better, while 75% of existing homes will be upgraded to meet a minimum of EPC C by 2026. Ensuring that housing is greener will be vital if the UK is to be a net-zero country by 2050 given that housing is responsible for around a third of the country’s carbon emissions.
A wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA) retains its stake in Fizzy Living,
Savills Capital Advisors acted as an advisor to MTVH on the sale.
Geeta Nanda, CEO, Metropolitan Thames Valley Housing Association, said: “Housing associations have always been at the forefront of innovation, going into markets and locations others don’t. We are extremely proud to have continued that tradition by pioneering a new approach towards the build-to-rent market with Fizzy Living. When we established Fizzy nearly a decade ago, it was the UK’s first true build-to-rent brand, offering much needed rental housing to the city’s young professionals. Not only has it helped provide homes, Fizzy has also spurred institutional investment into the UK through launching and establishing BtR as an asset class.
“Now that the whole build to rent sector is firmly established in the UK, with roughly £45bn of committed capital, this is the right moment to relinquish our remaining stake. Metropolitan Thames Valley Housing has always had an exit strategy for our investment in Fizzy, and Greystar is the right exit partner and we look forward to seeing them take the Fizzy brand to the next level.”