M&G Real Estate has agreed to finance developer Telford Homes' Carmen Street residential development in London with a £69.3 mln (€91 mln) loan.
The deal was made on behalf of M&G Real Estate’s £220 mln UK residential property strategy launched in mid-2013 for UK and international investors, managed by Alex Greaves.
Telford Homes will be developer and contractor of the scheme, which is anticipated to be ready for occupation by September 2019.
The development, to be known as Carmen Street, will comprise two five-storey buildings and a 22-storey tower providing a total of 150 new private rental homes.
'This partnership with Telford Homes marks a significant point in the evolution of our residential investment strategy,' said Alex Greaves, head of Residential Investment at M&G Real Estate. 'We have now invested in over 1,200 units on behalf of UK and international institutional investors, including pension funds, insurance companies and local authorities.'
Jon Di-Stefano, Chief Executive of Telford Homes, added: 'We are delighted to be working with M&G, a leading international asset manager that is enthusiastically increasing its Private Rented Sector portfolio. Forward funded PRS transactions offer strong returns and we are very pleased to have swiftly secured our second sale in the sector just a few months after our first.'
Since launch in 2013, M&G Real Estate’s UK residential property strategy has built up a portfolio of 591 built homes with another 618 in development.
Including this deal, M&G has made over £515 mln of residential rental property investments since the beginning of 2013.
