PGIM Real Estate’s UK affordable housing strategy has expanded its portfolio with three single-family housing transactions.
PGIM is acquiring 73 new homes in Littlehampton, West Sussex, and is expanding the portfolio with two additional acquisitions in Exeter, Devon, and St Austell, Cornwall. Financial details of the transactions were not disclosed.
PGIM Real Estate’s UK affordable housing strategy acquires and operates single-family rental homes at affordable rents, providing housing for working families and co-renters.
Since its December 2020 launch, the strategy has invested over £310m (€371m) across 31 housing schemes, delivering approximately 1,800 homes. Most of the portfolio is completed and occupied.
Oscar Kingsbury, portfolio manager for the strategy, said: “At a time when UK residential total returns have strengthened and are forecast to grow into 2025, these transactions further diversify the strategy’s existing portfolio, which aims to deliver long-term, resilient returns for its investors.
“UK residential remains at the top of many investor’s allocation wish lists for 2025. This is no great surprise, given the market dynamics that exist. However, we feel that investors should also be focussing on the affordability of residential rents and the sustainability of future rental growth.”
To read the latest IPE Real Assets magazine click here.
