MORE Residential and Stockbridge have formed a $4bn (€3.55bn) programmatic joint venture to invest in single-family rental communities in the US.

MORE Residential, a Texas-based owner and operator of rental properties, and Stockbridge, a San Francisco-based investment will target newly-purpose-built properties and development projects in high-growth US markets.

The joint venture has already acquired, or is in the process of buying, more than $1bn of assets, which are at various stages of development throughout the US Sun Belt.

MORE Residential is led by former senior executives of Monogram Residential Trust, a New York-listed multifamily real estate investment trust that was taken private by institutional investors in 2017.

The company will oversee day-to-day operations of the venture, while Stockbridge will contribute to the investment strategy execution.

“This housing type caters to the preferences of the US’s two largest demographic cohorts: Millennials and Baby Boomers,” said Mark Alfieri, CEO of MORE Residential.

“We’re offering Millennials larger living spaces to accommodate growing families, and Baby Boomers the hassle-free lifestyle of renting, packaged together with modern amenities, and professional management and maintenance teams, all at an accessible price relative to home ownership.”

Terry Fancher, executive managing director of Stockbridge, said: “In many areas of the US, there is enormous unmet housing demand.

“We’ve created a platform premised on offering attainable housing for those seeking high-quality homes in desirable community settings.

“The MORE Residential team provides important leadership for this new venture through their deep rental housing management experience and extensive network of developer relationships for helping the venture source new acquisitions to grow.”