InProp Capital is hoping to create a multi-billion-pound UK housing fund providing ‘equity release’ arrangements to individual homeowners.
An unnamed real estate investment manager is prepared to act as a cornerstone investor if it can find a co-investor to provide an additional £50m.
InProp Capital argues that the strategy provides “core UK residential” exposure in the form a geographically diversified spread of “owner-occupied, single-family assets”.
It is also expected to satisfy growing demand for equity release products that allow older homeowners to release some, or all, of the equity tied up in their properties.
“This is in marked contrast to PRS and other forms of institutional residential investments currently available,” according to a document outlining the concept.
“The strategy satisfies demand from both the rapidly growing, and demographically driven, equity release market, and institutional investors seeking scalable, low cost, core UK residential property exposure capable of generating very long-term secure income.”
InProp Capital anticipates that the level of demand could allow the fund to reach £3bn in five years.
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