Aberdeen Standard Investments (ASI) has expanded its UK private rented sector portfolio by investing over £44m (€50m) into residential assets.

Aberdeen Standard said it has acquired the newly built Lochrin Quay, a 113-unit residential block in Edinburgh for £27.5m. The property, which offers a range of accommodation is already 80% occupied. This the second residential acquisition for a £2.3bn multi-sector portfolio.

The fund manager also said its UK PRS Opportunities 1 Fund has committed £17.25m for the development of a new 107-unit residential scheme in Leeds. The developer, KMRE Group, will complete the scheme in spring 2019.

This investment will be the second asset for UK PRS Opportunities 1, which was launched in 2016 to focus on large investments in the private rented sector across the UK, including income-producing assets and development opportunities.

The two deals will increase the asset manager’s total residential assets under management in the UK to more than £700m, across 12 funds.

Aberdeen Standard Investments’ current UK residential portfolio includes over 800 private rented units and nearly 6,000 student rooms.

Ed Crockett, the fund manager at Aberdeen Standard Investments, said: “These deals reinforce our long-standing commitment to the private rented sector in the UK, where we continue to target high-quality housing stock in key cities.”

Crockett said the UK market is currently worth more than £1trn and is set to grow with an anticipated 24% increase in private renting by 2022.

“With its secure long-term rental income streams, residential property is a compelling opportunity for investors. But product is key. Our experience in Europe, shows that what really counts is being able to create homes and communities that people want to live in for decades.”