PGIM Real Estate has formed a development partnership with Groupe UNITI and acquired a stake in the French social housing developer.
The manager’s pan-European value-add fund and UNITI will commit nearly €35m to the newly formed UNITI Croissance joint venture, to deliver over €200m worth of new homes.
PGIM Real Estate said UNITI Croissance will be focused on social, intermediate and affordable senior housing, with some private rented sector unit.
The PGIM Real Estate fund will also take a 35% equity stake in UNITI to help support the social housing developer’s growth.
Jocelyn de Verdelon, PGIM Real Estate head of France, said: “The shortage of subsidised housing, including social, intermediate and affordable senior housing, highlights a serious lack of funding despite high demand across all French regions.
“With nearly €600m in transactions in 2018, we want to pursue value creation by positioning ourselves in this segment through a partnership that will be both a driver for social cohesion and long-term investment performance.”
Stéphane Oria, Groupe UNITI CEO, said: “We are proud to welcome a partner like PGIM Real Estate among our shareholders to deliver UNITI Croissance.
”Beyond financing support, this partnership will allow us to benefit from PGIM Real Estate’s strategic expertise.”