Venn Partners has been hired by the UK government to manage its guaranteed residential bond programme, aimed at institutional investors.
The Department for Communities and Local Government awarded the asset manager a mandate to operate the UK’s £3.5bn (€4.4bn) Private Rented Sector Guarantee Scheme.
Venn will originate, underwrite and manage loans for the UK government scheme, developing a guaranteed bond programme.
The scheme aims to increase private-rented sector (PRS) investment by institutional investors by providing access to long-term loans.
The initial £3.5bn scheme has an option to increase to £6.5bn.
Paul House, head of real estate at Venn Partners, said attracting ”significant institutional investment” to PRS is ”critical” if the sector is to expand and improve standards. Tenant choice could also improve as a result of the scheme, House said.
The scheme is targeting large PRS projects above £10m, which will be held as PRS assets for the length of the guarantee.
Venn said it has completed 13 transactions over the past year in the UK and in continental Europe. The firm funded HUB’s £97.5m 360-home development at London’s Royal Docks.
Earlier this year, Venn bought a €500m Dutch residential mortgage portfolio from GE Artesia Bank.
The British Property Federation (BPF) welcomed the deal.
Ian Fletcher, BPF director of policy (finance), said the scheme is ”another important building block in the story of build-to-rent and increasing housing supply through institutional investment in rented homes”.
