APG has teamed up with Qatari Diar and Delancey for a £1.4bn (€1.7bn) UK private-rented sector (PRS) venture.
The Dutch pension fund asset manager is entering a partnership with the Qatari Diar Real Estate Investment Company, as well as Delancey’s DV4 client fund. Clearance for the joint venture is due later this year.
They will use the East Village scheme in the UK capital’s 2012 Stratford Olympic Village – sold in 2011 to Qatari Diar and Delancey – and the first phase of the Elephant and Castle town centre redevelopment in south London to seed the joint venture. The latter is an existing joint venture between APG and Delancey.
APG’s head of European property investments, Robert-Jan Foortse, said the seed projects would deliver “substantial contributions to the further regeneration of the local areas”.
The parties in the joint venture said 1,500 homes were built and substantially let, 1,000 homes were under construction and that the remaining 1,500 homes had planning consent.
Get Living London will manage and lease the homes.
“We expect the Get Living London management will continue to introduce new levels of professionalism to the London residential market,” Foortse said.
APG entered the UK residential property market in 2013, buying part of a £350m portfolio with Grainger.
The Dutch institution invested £158m in GRIP to buy part of G:res1, one of Grainger’s property funds.
PGGM and Legal & General Capital are looking to invest £600m in the UK PRS, as reported in January.