Aviva Investors has funded a 133-homes project via its UK single-family rental investment partnership with Packaged Living.
The deal, made through the Aviva Investors Real Estate Active Long Term Asset Fund, involves the forward funding of the homes in Wixams, Bedfordshire.
The investment brings the fund manager’s UK single-family housing platform’s total funded new homes to over 1,500, representing a total commitment of nearly £575m (€669m).
The deal also represents the 11th investment by Aviva Investors since partnering with Packaged Living in 2021 and is the second time the partnership has engaged in a forward funding transaction with Barratt Redrow, the developer responsible for building the homes.
Ben Sanderson, managing director for real estate at Aviva Investors, said: “We are pleased with the growth of our single-family housing platform, having set out with the initial expectation of funding 1,000 new homes. The living sector is a core part of our real estate investment strategy.
“Having already invested approximately £800m into UK living, we have an ambition to grow that commitment significantly over the next three to four years.
“These investments show the role private capital can play in supporting the creation of new homes across the country that can help the UK get ready for the future by combining high energy efficiency with modern technology, thereby lowering costs for families living in them, whilst also delivering long-term investment outcomes.”
Jonathon Ivory, CIO, Packaged Living, said: “This is our second transaction with Barratt Redrow. Over 60% of our investments are now with strategic partners with whom we enjoy programmatic relationships. This ‘rinse and repeat’ approach to the single-family housing business model reduces the time and cost of each transaction, the savings of which are then reinvested in growing the portfolio and solving for the government’s housing agenda.
“It also doesn’t hurt that Universal Studios just announced it will be developing Europe’s largest theme park on our doorstep. This multi-billion-pound investment will create thousands of local jobs and provide our business plan with significant upside potential.”
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