Alternative asset manager PfP Capital has set up a £550m (€558.5m) fund to target UK build-to-rent (BTR) opportunities.
PfP said the fund will be seeded with three major residential development schemes across the UK, valued at £150m, which will be forward-funded through a special purpose vehicle, prior to introducing long-term capital through the fund.
The fund management arm, set up by property developer Places for People Group, said Alex Notay, a director of product and service innovation at Places for People, will move across to manage the new BTR fund.
“Once fully invested, it is expected that the fund will have forward-funded 3000 homes across six to eight high-quality, large-scale schemes targeting investment in regional towns and cities,” PfP said.
PfP said the BTR Fund remains separate from its traditional private-rented sector (PRS) focused strategy.
The fund strategy is to identify and invest in sites in which the team can use its expertise to seek significant capital value growth through large-scale, purpose-built and professionally managed BTR communities.
Notay, said: “Institutions recognise that the UK build-to-rent sector has potential to deliver significant, stable returns over the long-term but also that social impact is now a genuine priority for investors.”
Chris Jones, the managing director of PfP, said: “We remain committed to exploring new and innovative ways to deliver investment opportunities within UK real estate that match the varying risk/return profiles of institutional investors.
“We see huge opportunity in being able to offer differentiated products through our PRS and BTR strategies that will offer residents greater quality and choice.”