M&G Real Estate finances UK residential scheme

M&G Real Estate is financing a private-rented housing development near London.

The manager is investing £71.4m (€82.9m) for its UK residential property strategy in the Britannia Music Site scheme in Ilford, outside the UK capital.

The project’s developer, Durkan, is providing 206 private rental units in a joint venture with M&G Real Estate, as well as 93 affordable homes and 55 for private sale.

Alex Greaves, ‎head of residential investment at M&G Real Estate, said: “Following our partnerships and deals with Crest Nicholson, Telford Homes and Mulbury, this deal demonstrates our commitment to providing renters in the UK with the highest quality of homes in well-managed, sustainable communities.

“The build to rent sector offers long-term growth potential with considerable diversification benefits for investors – and our strategy ensures scale and efficiency, which in turn provides a major opportunity for institutional investors seeking access to the UK residential sector.”

Durkan will be developer and contractor for the scheme, due for occupation in 2020.