Prupim, the real estate investment management arm of M&G Investments, has exchanged contracts to acquire a £105 mln (€124 mln) residential portfolio in England.
Prupim, the real estate investment management arm of M&G Investments, has exchanged contracts to acquire a £105 mln (€124 mln) residential portfolio in England.
The portfolio consists of 534 private rental units in 13 locations across Greater London, the southeast and southern England. The package is being sold by The Berkeley Group Holdings and is partially funded by the Homes and Communities Agency (HCA).
Prupim will take on the management of the portfolio on completion, expected to be in June 2013 and Berkeley will become a minority co-investor.
On completion of the transaction, the day to day management of the properties will be undertaken by Savills.
'The expanding residential rental property market, particularly in London and southern England, is gaining in appeal for institutional investors,' commented Alex Jeffrey, Chief Executive of Prupim.
He added: 'We believe that returns from the sector - which have historically outpaced commercial real estate - will continue to be attractive as demand increases.'
The properties were developed under the 2009 Private Rented Sector Initiative, a scheme designed to attract more institutional investment to the UK housing market. Berkeley, the UK housing developer and HCA, the national housing and regeneration agency, collaborated on the construction in August 2010, using HCA funding to kick start the development.
Prupim was advised by Savills and Berwin Leighton Paisner. HCA was advised by CBRE. Prior to the sale, Internos assisted Quintain as the asset manager.
