Invesco Real Estate’s first UK private-rented sector (PRS) investment fund has been backed by Australian, Canadian and domestic investors.
The open-ended fund has £250m (€328m) to invest, including debt, in the UK housing market and plans to attract more capital commitments over the next 12 months.
John German, senior director of residential investment, said: “The PRS or ‘multifamily’ sector is an established and well-understood asset class in parts of Europe and North America/Canada, so we are particularly pleased to have attracted experienced investors from these regions.
“They share our assessment of the attractive properties of this growing sector in the UK, including its low correlation with commercial real estate, equities and gilts; its long-term return profile; the relative stability of income the sector may offer, and the potential diversification benefits it can provide as part of a mixed-use portfolio.”
The firm said it is targeting “large-scale opportunities in recognised locations, within proven letting markets”, with deals in the southeast of England due to close.
German last year told IPE Real Estate that the firm, active in the more-established US multifamily sector, was investing in UK PRS for domestic pension funds as well as international capital, both through funds and separate accounts.
Invesco made its first UK PRS investment in 2014, acting for a local authority pension fund. The 118-unit scheme, in west London, was bought for £32.5m. The scheme’s development is due for completion this year.