Global real assets specialist Patrizia, and Man GPM, the private markets investment business of Man Group, have launched a new joint venture (JV) targeting an investment of £100 mln (€115 mln) into the UK’s affordable housing sector.
The JV will focus on the development of environmentally and socially sustainable single-family housing for mid-market renters, in locations around England where housing affordability is poor.
Sustainability is at the core of the platform, with all homes to be developed to a minimum EPC A rating, targeting Home Quality Mark 4* and a zero operational carbon footprint.
Each development will also have ecological initiatives and enhance biodiversity and look to make a positive impact on local communities through a combination of innovative environmental and social initiatives.
The JV comprises Patrizia’s SFDR Article 9 impact strategy, Patrizia Sustainable Communities, and Man GPM, which has an established presence in the UK affordable housing sector.
Capital for the JV will be provided by Patrizia Sustainable Communities and Man Group, with Man GPM acting as the operating partner through its Community Housing team.
The JV has already commenced its £100 mln investment programme with a commitment to forward-fund the development of 70 new-build homes on long-term affordable rents in Milton Keynes, which is less than 50 miles north of London.
Part of a wider masterplan being developed by a listed housebuilder, the investment will deliver single-family affordable homes adhering to the minimum EPC rating of A and Home Quality Mark 4* target outlined by the JV.
There will be open parkland, improvements to communal areas and investment in local community groups, designed to reduce social exclusion, tackle loneliness and foster greater community interaction.
Marleen Bikker-Bekkers, Patrizia Sustainable Communities fund manager and Patrizia Global Partners head of European investments said: 'We are very pleased to partner with Man GPM to launch Patrizia’s impact investment strategy in the UK.
Our JV combines deep knowledge of the English affordable housing sector with crucial institutional investment, enabling us to help deliver much-needed and highly sustainable housing for key workers and others on low to middle incomes within the community.
By bringing together two teams that are focused on impact, the joint venture has the potential to deliver real social value, as well as attractive risk-adjusted returns, strengthening our purpose of building communities and sustainable futures.
The launch of the JV marks an exciting next step in our ambition to house 10,000 people in affordable and social homes through our pan-European impact investment strategy.'
Shamez Alibhai, managing director and head of xommunity housing at Man GPM, adds: 'We hope this innovative joint venture will set a benchmark for delivering environmentally and socially sustainable housing developments.
'Our partnership with Patrizia is a key part of our ambition to try to address the profound lack of homes in which people can thrive. In the current economic environment, the need for housing options that connect communities has never been greater, so it’s fantastic to have a like-minded partner working side-by-side with our team.'
