British Land has pulled out of plans to acquire BTR platform Fizzy Living.
The deal would have seen British Land buy the platform from Thames Valley Housing, in the biggest UK REIT vote of confidence in the private rented sector to date.
EG previously revealed British Land’s planned acquisition of both the management company and TVH’s 16% stake in the portfolio in June.
Negotiations were in the early stages at that time, with the potential for British Land to up its acquisition to include a stake of Abu Dhabi Investment Authority (ADIA)’s majority interest.
However, it is understood that the complex nature of the deal has led British Land to instead focus on its own portfolio and internal skills. The REIT is expected to keep its options open in regards to other potential BTR operator acquisitions.
A spokesman on behalf of Metropolitan Thames Valley and Fizzy Living said: “I can confirm that Fizzy is not currently in negotiation with any party in relation to the sale of the business.
“We are entirely focused on the delivery of high quality residential apartments for the rental market and providing a level of customer care that has made Fizzy the number one brand in this important area of the housing market.”
Fizzy has a near 1,000-flat portfolio across eight sites in London, seven of which are operational. It was set up with seed capital of £30m from TVH and £40m of debt from Macquarie Capital, before ADIA committed £400m during 2014 and 2015.
Last week, British Land announced a significant board reshuffle after the departure of Charlie Maudsley and Tim Roberts. Roberts led offices and Maudsley previously headed up retail, leisure and residential. His departure has led to a shuffle of the residential leadership team, with the head of residential role still to be announced.
British Land declined to comment.
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