Aviva Investors has partnered with UK residential real estate developer Packaged Living to create an affordable single-family rental (SFR) platform.
Aviva said the platform, which is expected to be seeded with an initial allocation of up to 1,000 homes, will target an initial £200m portfolio, with a pipeline of investments expected to add a further £500m in the coming months.
The newly created platform will acquire and forward fund build-to-rent (BTR) suburban homes across the UK.
The partnership will acquire and forward fund homes directly from housebuilders which will then be let to families, offering a flexible and affordable solution to the UK’s housing shortage, the asset manager said.
Packaged Living will be responsible for acquisitions, delivery and management of the portfolio.
George Fraser-Harding, fund manager at Aviva Investors, said the partnership with Packaged Living will focus on provision of homes where the need is greatest, whilst also delivering properties that are fit for the future, combining quality finishes with high energy efficiency, low carbon solutions and lower costs for families living in them.
“We also expect it to provide our clients’ portfolios with high-quality assets that have strong social and sustainability credentials.”
Jonathon Ivory, managing director of Packaged Living, said SFR is the next chapter in the evolution of the BTR story.
“SFR enjoys the same compelling risk-adjusted income returns as multifamily housing but benefits from more efficient operating expenses, resulting from longer leases / lower churn, less common area maintenance and the absence of expensive amenity spaces.
“With lower running costs, rents can be more affordable and thus landlords are able to capture a larger share of the local market.”
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