Europa Capital and joint venture partner Addington have sold the final residential unit at RAF Lakenheath in Suffolk, UK, on behalf of Europa Fund IV, following a major conversion programme.
The assets consist of 473 terraced units and detached houses and were previously used as the married living quarters for the US Air Force, hosted at RAF Lakenheath and home to the 48th Fighter Wing, accommodating over 5,000 US military personnel and 2,000 UK employees.
The properties, which are located alongside the base, were acquired by Europa Capital and Addington in 2014 from Ireland’s National Asset Management Agency. Since then, the properties have been carefully refurbished and modernised to create an attractive selection of two, three and four-bedroom homes for purchase. The works were predominantly focused on updating interiors, bathrooms and kitchens, as well installing government-backed Air Source Heat Pumps, an innovative and renewable energy technology that heats the home from air outside.
Many of the homes were targeted at first-time buyer and started at £175,000 for a two-bedroom unit. They provide commutable access to the cities of Cambridge and Norwich. The initial investment included a small retail parade of seven 1,000 sq. ft. units and land parcels providing the potential for additional new homes, all of which was sold down through the ownership.
Europa Capital was an early institutional mover into residential investment and has invested in or developed over 7,000 bed spaces in PRS and student accommodation in key UK and Continental European locations since 2012.
Hugo Black, Partner at Europa Capital commented, “This unique investment provided the opportunity of bringing nearly 500 homes for purchase to the local area, whilst delivering attractive returns to investors through a wholesale to retail strategy. Having gained valuable experience in the residential sector through this and a host of other projects, we are now looking ahead to future opportunities, both across the UK and mainland Europe.”
Martin Roberts, Principal at Addington added, “Addington continues to find opportunities to enhance property values across our main sectors, of which residential is high on the list. We have a proven track record of both spotting opportunities and intensively asset managing such portfolios to create value. We are delighted to have worked with Europa over the past five years to bring about this success at RAF Lakenheath for both new home owners and for investors in the project.”
