KCR Residential REIT has joined forces with AIM-listed specialist housebuilder Inland Homes to target UK private rented sector (PRS) opportunities.

KCR said it has established a strategic relationship with the South and South-East of England focussed developer to support the delivery of low-to-mid-priced housing for rent.

As part of the agreement, the duo have identified an initial pipeline valued in excess of £100m (€113.9m) from within Inland’s current portfolio, comprising investment properties, units under construction and land with planning consent.

KCR, which is also listed on London’s junior investment market, aims is to build a substantial UK low-to-mid-priced rented residential property portfolio that generates both secure income flow and increasing net asset value.

KCR said having access to this initial pipeline will significantly accelerate the development of its residential property portfolio.

Through these transactions, Inland intends to build a long-term minority shareholding in KCR, providing Inland with exposure to the UK private rented sector.

Dominic White, the chief executive of KCR, said: “Our strategic relationship with Inland creates a synergy that will allow both parties to accelerate their respective commercial prospects and deliver greater shareholder value.

“At the same time, we will be able to use Inland’s construction capabilities in relation to new-build and refurbishment projects across KCR’s current and future assets.”

Stephen Wicks, chief executive of Inland Homes, said: “This potential investment will provide us with exposure to the fast growing PRS sector at an attractive entry point, alongside a dynamic and ambitious management team.

“It offers the potential for Inland shareholders to be beneficiaries of the synergies that this agreement would create, and alongside our established regeneration expertise and rapidly expanding residential development activities, sees the business further broaden its UK residential sector exposure.”