The fund management arm of property developer Places for People has raised an additional £40m (€46.2m) for an impact-focused Scottish mid-market rent fund.

PfP Capital said the Mid-Market Rent (MMR) fund received the capital commitment from the Scottish National Investment Bank, taking the fund’s total commitments to over £180m.

The amount raised exceeds the impact fund’s initial £160m fundraising target, PfP said, adding that it has now increased the fund’s target size to £240m.

As previously reported, the MMR housing fund – backed by Scottish government and  Castle Rock Edinvar –  received £85m from the Nationwide Pension Fund and Strathclyde Pension Fund in July last year. The fund was launch in June 2018

The MMR fund was established to deliver mid-market rental homes including a mix of apartments and family houses within commuting distance of Scotland’s main cities.

The manager said the fund is now developing seven sites, with a further 897 affordable homes under construction.

William Kyle, fund director, PfP Capital, said: “The capital provided by the Scottish National Investment Bank allows us to both exceed our initial target of 1,000 affordable homes and to accelerate beyond this as we attract additional funds.

“We have already made great progress in achieving that first target, completing construction on our first two developments comprising 109 homes.”

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