PfP Capital, our fund management business, has announced it will launch a £550 million fund which focuses on investing in high-quality build-to-rent opportunities throughout the UK.
The build-to-rent (“BTR”) fund will be seeded with three major residential development schemes across the UK, valued at approximately £150 million, which will be forward-funded through a special purpose vehicle, prior to introducing long-term capital through the Fund.
Once established, the Fund will look to forward-fund additional development opportunities comprising at least 300 units in which it can leverage Places for People Group’s significant expertise. It is expected that the Fund, when fully invested, will have forward-funded 3,000 homes across six to eight high-quality, large-scale schemes in regional towns and cities. Places for People’s market rent and BTR specialist, Touchstone, will manage the properties on behalf of the Fund.
The BTR Fund remains separate to PfP Capital’s traditional PRS-focused strategy. The Fund strategy is to identify and invest in sites in which the team can use its expertise to seek significant capital value growth through large-scale, purpose-built and professionally managed BTR communities.
Launched in 2017, Places for People was the first organisation of its kind to establish a distinct fund management capability. Following the launch of the BTR Fund, PfP Capital will continue to explore a number of options to give the institutional investor community access to a range of housing propositions through its socially-conscious fund management approach.
David Cowans, Group Chief Executive of Places for People said,
"The creation of a build-to-rent fund is another example of how we proactively develop innovative funding models to support the delivery of new homes and attract wider investment into the housing sector. It will continue to accelerate our wider growth, enabling us to acquire and develop new assets to support both our commercial and socially-driven objectives."
Chris Jones, Managing Director for PfP Capital added,
“We remain committed to exploring new and innovative ways to deliver investment opportunities within UK real estate that match the varying risk/return profiles of institutional investors. We see huge opportunity in being able to offer differentiated products through our PRS and BTR strategies that will offer residents greater quality and choice. There is growing interest in the variety of UK housing tenure’s as an investment asset class and we will continue to develop our business to provide solutions to this demand rooted in Places for People’s socially-driven objectives.”