USAA Real Estate (USAARE) has formed a joint venture (JV) with Packaged Living to develop a portfolio of multifamily rental assets across the UK.

The built-to-rent (BTR) venture plans to build a diversified portfolio of several thousand units across the country to help meet the demand for purpose-built rental housing that is amenitised, sustainable and energy-efficient.

The new partnership has already acquired its first site in Liverpool and expects to announce additional site acquisitions and development plans in near future, the companies said.

Packaged Living, which has acquired, funded and developed more than 5,000 homes alongside its other partners, will be responsible for the acquisition and delivery of BTR opportunities for the latest joint venture’s portfolio.

Ed Ellerington, founder and managing director of Packaged Living said: “The UK has long had a mismatch between the demand for homes and the volume supplied to the market. We see a huge opportunity to positively change that market and we are delighted to launch USAARE as one of our new partners.

”Our JV will focus on creating best-in-class multifamily BTR assets where the need is greatest, whilst also delivering properties that are fit for the future, combining quality finishes with high energy efficiency, and lower costs.”

Texas-based USAARE, which was formed 40 years ago, is in its eighth year of investment in Europe.

Justin Hildebrandt, executive managing director and head of Europe at USAARE, said: “We see an opportunity to capitalise on unmet consumer and investor demand for institutionally-owned multifamily housing in the UK through developing rental homes in locations with compelling market dynamics and buildings that have market-leading design, sustainability metrics, and amenities.

”Having already developed and invested in US multifamily in scale for decades, it was a natural choice to enter the UK market. Our significant experience in the US multifamily sector along with our experience with planning and development in the UK pairs well with Packaged Living’s expertise. The UK BTR market is rapidly maturing and continued densification in and around major cities sets the stage for long-term growth.”

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