Goldman Sachs Asset Management is planning to initially buy up to 700 UK build-to-rent homes from master developer Urban&Civic.
Urban&Civic said it has signed a three-year agreement to build new homes for rent across its portfolio of sites on behalf of the real estate arm of Goldman Sachs.
Goldman Sachs will partner with residential property operator Pitmore, who will oversee the development and management of the houses, which will predominantly be built for single families.
Urban&Civic will identify and allocate parcels of land suitable for market rent homes within its projects, alongside the existing homes for sale and affordable homes.
Urban&Civic said the first project to be delivered under the framework will provide 149 homes at its development at Houlton, Rugby which is a joint venture with Aviva Investors.
The latest deal expands Goldman Sachs’ presence in the UK single-family rental market, building off the recent acquisition of 918 units across 15 sites from Gatehouse Bank.
Chris Semones, managing director in the real estate business within Goldman Sachs Asset Management, said: “We believe that high quality, new rental homes are an undersupplied segment in the UK housing market.
“We look forward to partnering with Urban&Civic and Pitmore to deliver homes that provide families with well-priced, well-managed and high-quality living spaces.”
Nigel Hugill, CEO at Urban&Civic, said: “We see single-family housing for market rent as an important part of the mix of tenures that will give people choice and access to our developments.
“This strategic partnership will enable us to accelerate housing delivery and further increase absorption rates.”
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