New framework agreement will initially expand portfolio by 700 homes 

Goldman Sachs has signed a three-year framework agreement to buy new market rent homes from Urban & Civic.

The US investment banking giant, in its latest expansion into the United Kingdom housing market, will initially acquire 700 new homes across its portfolio of large-scale sites. The homes will be developed in partnership with housing management specialist Pitmore.

Houlton urban and civic

Urban & Civic’s development at Houlton, Rugby

Under the agreement, Urban & Civic will identify and allocate “parcels of land suitable for market rent” within its 37,000-home pipeline.

The first project to be delivered under the framework will provide 149 homes at Urban & Civic’s development at Houlton, Rugby, which is a joint venture with Aviva Investors.

The framework will further expand Goldman Sachs’ presence in the rental housing market, following the £150 million acquisition earlier this year of 918 units across 15 sites from Gatehouse Bank.

A spokesperson said the framework “gives Goldman Sachs the ability to acquire new homes for market rent in key strategic locations”.

Chris Semones, managing director in the real estate business within Goldman Sachs Asset Management, said: “We believe that high quality, new rental homes are an undersupplied segment in the UK housing market. We look forward to partnering with Urban & Civic and Pitmore to deliver homes that provide families with well-priced, well-managed and high quality living spaces.”

Nigel Hugill, chief executive at Urban & Civic, said: “We are very pleased to have agreed a new strategic partnership with Goldman Sachs Asset Management to bring more homes for rent. We see single family housing for market rent as an important part of the mix of tenures that will give people choice and access to our developments. This strategic partnership will enable us to accelerate housing delivery and further increase absorption rates.”