Invesco Real Estate has invested an undisclosed sum on behalf of its latest US value-add fund to buy a 75% stake in single-family rental platform Avanta Residential.

The Invesco Real Estate US Fund VI will own the majority stake in Avanta with Hunt Companies retaining the remaining 25% interest.

Bert Crouch, head of North America for Invesco Real Estate, said: “Most of the capital for single-family rental has been invested in the Southeast and Southwest regions of the country.

“We believe the main reasons for this are there is available land to develop projects in those areas, there is strong rental demand in those states and the areas have a lower tax base that allows for people to achieve a higher standard of living.”

Advanta was formed last year by Hunt. One of its initial projects is The Colony in Bastrop, Texas. 

“Our investment strategy going forward with Avanta will be a build-to-rent strategy involving constructing entire communities. A typical size project for the company will be somewhere in the range of 200 to 400 units,” said Crouch.

As previously reported, the US Fund VI fund raised an initial $700m and is expected to have a final close this year, but has until 30 June of next year to reach either the $1.25bn target or $1.5bn hard cap.

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