£7m deal agreed for residential property portfolio to include Wakefield

Residential property fund manager Hearthstone Investments has agreed a £7m deal to acquire a portfolio of properties in Wakefield, Cardiff, Doncaster, Hull, Nottingham and Wigan.

The firm has exchanged contracts with Bovis Peer for the purchase of a portfolio of 34 houses and a low-rise block of 19 flats.

The assets will be acquired by HRF1, a ten-year closed-end private equity vehicle investing into the private rented sector in UK regions.

The houses are situated in Doncaster, Hull, Nottingham, Wakefield and Wigan, and comprise a mix of two to four bed residences in five separate clusters. The flats form a complete low-rise block and are located in Cardiff Bay.

Andrew Smith, partner and chief investment officer, Hearthstone Investment Management, said: "While this is an investment portfolio of modern Bovis Homes-built properties, they are already tenanted and are therefore income-producing. More specifically, the houses are located in higher yielding areas which will help the fund to achieve its stated income objectives."

Advising the vendor is Davis and Partners while Charles Russell Speechlys is advising HRF1.