UK construction firm Morgan Sindall Group is seeking a partner for a new build-to-rent (BTR) strategy in London and the South East of England.

The listed firm’s subsidiary Morgan Sindall Investments Limited (MSIL) said it has set up a new fund with a seed portfolio of more than 1000 purpose built residential rental units with a gross development value of £480m.

MSIL has also appointed real estate advisory service firm GVA to raise capital for the funding vehicle.

Richard Stonehouse, a senior director and head of residential investment at GVA, said: “With the UK continuing to be an incredibly attractive destination to invest in this rapidly emerging asset class, there remains a huge supply and demand imbalance particularly in South East England where affordability is most constrained.

“The investment strategy is not only focused on the squeezed mid-market where occupier demand is highest but it covers core commuter belt locations which are also set to benefit from the broader regeneration and infrastructure investment premium which MSIL is delivering through long-term joint ventures.”

MSIL provides development and funding solutions in partnership with both the private and public sector which improves the long-term prospects and well-being of local communities. 

MSIL along with its sister companies Lovell and MUSE is targeting the delivery of more than 20,000 homes over the next decade.

“Unlike most other BTR funding vehicles, which have different entry points, MSIL offers a vertically integrated development and investment management capability. As such, we anticipate a high level of interest from a broad range of parties,” Stonehouse said.

Rebecca Lewis, an investment manager at MSIL, said: “The UK investment market in build-to-rent rarely sees opportunities of this scale and quality. MSIL’s credentials across public/ private partnerships, design, construction and investment management provides the ability to deploy large volumes of strategic capital against institutional grade new build rental stock across multiple prime town centre locations with excellent transport links into central London.

“We are targeting the mid-market with clusters of 200+ units with appropriate levels of associated amenity.”