Blackstone Inc (NYSE:BX), the private equity giant, has offloaded its portfolio of 3,000 shared-ownership homes in the United Kingdom to the country’s largest pension fund, highlighting growing activity in the housing market.
The Universities Superannuation Scheme (USS), which has over £75 billion in assets under management, will purchase the properties for a total of £405 million ($519 million).
The transaction is one of the largest in the UK housing sector this year, reflecting the growing interest of major investors in the country's housing market amid Labour’s efforts to rejuvenate the sector.
The homes were part of a portfolio managed by Sage Homes, a joint venture between Blackstone and investor Regis, launched in 2017.
The sale to USS highlights the increasing involvement of institutional investors in the sector as many hope to make long-term gains as demand continues to outstrip supply.
James Seppala, head of real estate Europe at Blackstone, said: "We have created an institutional grade portfolio which has, in turn, attracted more long-term institutional capital into the sector."
This deal follows Blackstone's recent acquisition of 1,750 rental homes from housebuilder Vistry, indicating it remains interested in investing in the UK housing market.