Invesco Real Estate has completed its first private-rented sector (PRS) residential project in the UK on behalf of the Lancashire County Pension Fund.

Residential developer Be and Invesco have completed 119 rental units in Hayes, West London.

It marks the culmination of Invesco’s debut build-to-rent investment in the UK, which was first reported by IPE Real Estate in 2014.

The development of The Gatefold residential scheme, part of the regeneration of the Old Vinyl Factory site, was carried out on behalf of Lancashire County Pension Fund, now part of the Local Pensions Partnership (LPP).

Richard Tomlinson, investment director of LPP, said it was the pension fund’s first build-to-rent investment.

“The investment is attractive because it is expected to deliver long-term cash returns that are likely to increase with inflation at the same time as helping to deliver much needed housing in the UK,” he said.

John German, senior director of residential investments at Invesco, said: “The Greater London residential market remains one of the most important real estate markets in the world for occupiers and investors, creating long-term demand and liquidity for high quality products.

“We expect investments in this market to outperform the mainstream UK residential market.”

He said the market fundamentals – particularly, the supply-demand imbalance in UK housing – would remain strong despite Brexit.

The investment would also be supported by population growth in the UK and London, German said, along with “the change in household tenure driven by affordability”.

He added: “It is these fundamentals, rather than market sentiment, that are creating the opportunity for institutional investment.”

The Gatefold is Be’s second build-to-rent development, having completed its first in London’s Tower Hamlets.

Matthew Pullen, managing director of Be, said: “The Gatefold is an important step for our business towards the creation of a substantial portfolio of vibrant rental communities across London.

“In Invesco Real Estate and LPP, we have partners that share our aspirations for a quality of product and service that represent a positive alternative to home ownership, rather than a compromise for those who struggle to achieve it.”