Hermes Investment Management and Countrywide’s joint venture in the UK’s private-rented sector (PRS) is investing £50m (€70.5m) in Liverpool.

The joint venture’s Vista UK Residential Real Estate Fund has agreed to buy the Baltic Village development in the northwest UK city from Promenade Estates.

The 214,000 sqft asset, the fund’s first large scale investment, will include 324 one, two and three bedroom apartments.

The Vista fund, established as a joint venture in October last year, has a target investor-level return of 9% to 10%.

Hermes said the fund currently has a £200m pipeline, with a target growth of £1bn over the next five years.

Chris Taylor, chief executive of Hermes Real Estate, said the scheme is a “solid, long-term investment”.

He said: “The Baltic Triangle is part of a city that has seen tremendous growth over the past few years and we are excited to see what more the development can bring to the local area.”

Developer Balfour Beatty has been contracted to build the scheme, with completion due next year.