PIC, a specialist insurer of defined benefit pension schemes, has acquired a fully operational, 598 unit build-to-rent (BTR) development in the UK city of Reading.
The landmark £200m (€231m) purchase of the Ebb & Flow residential building is one of the largest acquisitions of an operational BTR asset outside central London and the biggest investment by PIC in the living sector, the insurer said.
Ebb & Flow forms part of the wider award-winning £850m mixed-use regeneration project in Reading, called Station Hill, that includes Grade A offices, leisure and retail space.
James Agar, head of real estate origination at PIC, said: “The acquisition of Ebb & Flow aligns with PIC’s BTR investment strategy, which sets out a targeted approach to acquiring well‑located, high-quality developments in strong locations such as Reading. The significant demand for professionally managed rental housing across the UK supports sustainable, inflation‑linked cashflows which match PIC’s pension liabilities over coming decades.
“In line with this purpose, Ebb & Flow supports PIC’s long‑standing strategy of investing in the UK’s structurally undersupplied living sector to deliver tangible social value. Fully let, best-in-class operational assets represent strong relative value at this point in the market cycle, delivering attractive risk adjusted returns, as we navigate higher interest rates and the persistently tight credit spread environment.”
Ebb & Flow includes a range of amenities including fitness studios, roof terraces, club lounges and private dining locations.
Steve Hollands, head of built-to-rent origination at PIC, said: “Ebb & Flow is a strong addition to PIC’s existing BTR portfolio and reflects our updated strategic focus on acquiring purpose-built operational assets.
“Reading is a highly attractive location underpinned by strong employment fundamentals and excellent infrastructure and transport connectivity. The wider placemaking is also expected to further enhance the attractiveness of the immediate location underpinning sustainable long‑term income growth.”
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