M&G Real Estate has finalised terms to forward fund private-rented sector (PRS) residential properties in the UK.
The £43.5m (€54.7m) Victoria Square scheme in west London includes 152 units. M&G said the Acton scheme, which is being developed by Hub Residential, will provide one, two and three-bedroom apartments.
On completion, the scheme will be held within M&G’s UK residential fund, an open-ended vehicle that was launched last year.
It follows last year’s £105m investment in a 534-unit residential portfolio developed by Berkeley.
M&G has made over £300m of residential rent investments since early last year, including the sale and leaseback of 401 market rented units in east London, as well as the funding of 233 social and private rental residential units, also east of the capital.
Interest in the UK’s PRS sector has increased in recent months, with the Greater London Authority prioritising delivery of institution-backed PRS homes, setting a 5,000 yearly target for new development.
M&G fund manager Alex Greaves said he was looking for more opportunities to fund mid-market developments.
“For far too long, renting has been seen as a stepping stone to home ownership and, at times, even a backward step,” he said.