LaSalle Investment Management is investing £100m (€128m) in a Birmingham private-rented sector (PRS) development.

The investment manager will take the long leasehold interest in 603 build-to-rent apartments at Nikal’s Exchange Square scheme – part of the ongoing £600m Masshouse development – for a client.

Completion of the scheme’s first block is due in 2018, with full completion the following year.

The scheme, in the east of the city and near the high-speed rail link to London, includes one and two-bedroom units and studios.

The entire Exchange Square site will deliver 987 apartments across four buildings, with 27,500 sqft of retail and leisure space. 

Andrew Stanford, UK residential fund manager, said LaSalle would continue to target similar opportunities in cities such as Birmingham, where it sees strong fundamentals.

“Exchange Square is a significant acquisition that reinforces our strong belief in the long-term future of the build-to-rent sector for institutional investors,” he said. 

“It also illustrates our desire to enter appropriate schemes at an early stage, so we can tailor a high-quality end product for our future customers.”

The investment manager last year said it raised £120m for its first UK PRS fund. 

It is aiming to invest more than £500m in the residential market for clients through the fund and other investment vehicles.

The company bought the first assets for its UK Private Residential Fund – in Leeds and London – in January.