PGIM Real Estate’s European Value Partners II fund has agreed to enter into a joint venture with Osborne Developments for a multi-million-pound investment strategy targeting Build to Rent (BTR) multifamily opportunities in the South, Southeast and Southwest of England.
The venture will provide around £250 mln (€292 mln) of capital towards the strategy of acquiring land, delivery and stabilisation of new BTR urban developments.
Earlier this year, PGIM Real Estate announced the launch of its UK Affordable Housing Fund to develop single-family homes. In 2021 to date, the firm has invested in over 1,000 residential units in the UK across various funds and strategies, which includes the recent transaction between PGIM Real Estate and Osborne Developments in central Brighton, a scheme which is currently under construction.
‘The UK residential sector continues to offer defensive fundamentals and attractive long-term growth potential,’ commented Charles Crowe, head of UK Transactions at PGIM Real Estate. ‘Mobility is valued more than ever, and the most recent generation are renting much more than in the past, driving the need for the development of modern, first-rate affordable living spaces.
'This venture will see significant capital being deployed to build and develop these high-quality homes in areas with supply shortage, whilst creating value for our investors. We are delighted to work with an established developer such as Osborne and look forward to the venture.’
Osborne Developments is part of the Osborne Group and specialises as a developer/contractor in the student accommodation and residential sectors. Over the past 6 years the group has delivered over 3,500 student beds, and 1,250 homes for its own development business and other investors. The business is now seeking to focus on growing its build to rent activities through this partnership with PGIM Real Estate.
David Walters, director of Osborne Developments, said: ‘Following the recent sale of our Infrastructure business, this joint venture is part of our strategic plan focusing on the future success of Osborne. This venture with PGIM Real Estate allows us to focus on the current pipeline and securing new BTR opportunities. This a fundamental part of our developments business, and complemented by our other activities, including student accommodation and single-family housing utilising our off-site manufacturing business.’
