Aberdeen Asset Management has invested £25m (€29.6m) in a UK Private Rented Sector (PRS) asset.
The investment manager bought Queen Street Apartments in Leicester, the first deal for its Investment Club of UK pension funds.
Aberdeen raised £115m in August for the strategy, which will target existing schemes and new developments.
The 232-unit scheme is near the city’s station.
Aberdeen said it now managed 700 residential units in the UK, including student residential blocks, land or developments near transport centres or services, or existing developments.
Ed Crockett, who manages the fund, said: “We all know the UK isn’t building enough homes, which means purchasing a property is unachievable for too many.
“This means there’s real desire for decent quality rental properties that we are trying, for our part, to provide.”
Read more on the progress of PRS in the UK in the November/December edition of IPE Real Estate