Bridges Fund Management and developer HUB have agreed a £108m (€123m) forward funding deal in the UK with Canadian real estate investment company Realstar.

As part of the deal, Realstar, the owner of the UNCLE residential rental brand, will deliver the residential-led regeneration scheme in Leeds known as UNCLE Leeds Phase 2.

The 488 build-to-rent (BTR) homes project is the second Leeds development from the partnership. A forward funding deal was agreed on the adjacent UNCLE Leeds Phase 1 project last year.

HUB said the latest deal is the firm’s 11th forward funding deal and its fourth with Bridges and Realstar. In total, the partnership between the trio has now completed £370m of forward funding deals, with 1446 homes either completed or under construction.

Damien Sharkey, managing director at HUB, said: “Work has already started on site, and we look forward to delivering a scheme that will continue the transformation of this exciting area of Leeds, providing attainable homes for local people, as well as fantastic new public realm.

“The BTR sector is continuing to prove its resilience in turbulent times, and we are feeling very optimistic about 2023, with further deals coming forward over the next few months.”

Simon Ringer, partner, and head of property funds at Bridges Fund Management, said: “Our latest forward-funding partnership with Realstar is further evidence of the strong institutional demand for high-quality, highly sustainable residential assets.

“UNCLE Leeds Phase 2 will perfectly complement our existing scheme in Leeds, addressing the clear local demand for quality lower-cost housing and creating attractive public realm that will benefit the whole community.”

Ryan Prince, vice chairman of Realstar and founder of UNCLE, said: “In the last 10 years we have continued to see demand for high-quality rentals increase. UNCLE is committed to creating neighbourhoods that benefit our residents and the local areas around them.

“Our newest UNCLE Leeds does just that, bringing beautiful design, innovative common areas and great resident managers to an exciting area of Leeds.”

To read the latest edition of the latest IPE Real Assets magazine click here.