M&G Real Estate is investing £67m (€76m) to develop 148 build-to-rent homes in North London.

M&G Real Estate said the Montrose Crescent scheme, which is expected to be ready by 2019, will be developed by Sunbel Development.

It is the latest development financing on behalf of M&G Real Estate’s UK Residential Property Fund managed by Alex Greaves.

Greaves said: “This is our eighth funding deal in three years to finance much-needed homes catering for a range of demographics.”

The company said it recently completed the Rehearsal Rooms apartments in North Acton, the first institutionally funded build-to-rent scheme to complete in modern times.

Greaves said the company has had an “overwhelming amount of enquiries” for The Rehearsal Rooms, which is almost fully let, reflecting the call for professionally managed homes in well-connected areas across London.

“This strong demand presents long-term growth potential and considerable diversification benefits for investors.

“M&G Real Estate has a substantial residential development pipeline which offers a major opportunity for institutional investors looking to capitalise on the UK residential sector.”

Launched in 2013, M&G Real Estate’s UK residential property strategy has 687 built homes with another 1016 in development.