M&G Real Estate is looking to forward-fund a private rented sector (PRS) residential scheme in west London, according to media reports.
The investor has so far made one deal for its UK Residential Fund, spending £105m on a 534-unit residential portfolio. It is now looking to close a £45m investment on a west London PRS scheme under development.
M&G declined to comment on the forward-funding deal.
Speaking to IP Real Estate last month, M&G Real Estate fund manager Alex Greaves said finding stock in PRS – a “growing sector” – was an issue.
He said: “The reality is that PRS schemes will have to be forward-funded.”
Constrained supply and increased urbanisation, he added, made the PRS sector appealing to M&G, which prefers schemes in London and the South East. Greaves did not rule out making investments in regional UK cities, however.
Invesco Real Estate has also forward-funded PRS in west London, making its first investment on behalf of a UK local authority pension fund in Hayes.
To read an analysis of UK PRS, click here.