UK housing investor Housing Growth Partnership (HGP) is providing £28m (€32.3m) in equity funding to a new £145m joint venture created with JRL Group for a multi-family scheme.
Lloyds Banking Group-backed HGP and JRL have formed the joint venture to deliver the 414-home Castle Street scheme in Luton.
HGP’s £28m equity funding will be combined with a contribution from JRL to deliver the project which is expected to be completed in December 2027.
Malaysian conglomerate IJM owns a 50% stake in UK developer JRL.
Matthew Beech, investment director at JRL, said: “Forming this partnership with HGP to bring forward our Castle Street development is a significant milestone for the scheme. Castle Street will set a new benchmark for rental living in Luton, a town undergoing a once-in-a-generation regeneration, with investment transforming its economy, infrastructure and public realm.
“By delivering high-quality, professionally managed rental homes, JRL is proud to be helping to shape the future of Luton.”
Colin Bennett, investment director at HGP, said: “This first joint venture with JRL underlines our confidence in the resilience of the living sector at a time when economic and planning constraints are impacting housing starts.
“We are excited to bring the first BTR homes to Luton, made possible by the alignment of JRL’s delivery expertise with our flexible, long-term investment approach. This partnership will accelerate the scheme’s delivery, and we look forward to exploring further opportunities together in the future.”
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