Monday, 4 May 2015
M&G real estate joins forces with Crest Nicholson to provide new private rented sector homes in Bath (UK)
M&G Real Estate and Crest Nicholson plc, a leading developer of sustainable communities, have signed a deal to purchase 97 new private rental homes in Bath Riverside. The transaction is intended to form part of a longer term relationship with Crest Nicholson.
Under the terms of the Bath deal, M&G Real Estate will provide £25.2 mln (approx. €34.1 mln) to fund the development of 97 apartments and supporting community space.
Crest Nicholson is both developer and contractor of the scheme, of which the private rented sector (PRS) element will provide a mix of one and two bedroom apartments. It is anticipated that the units will be ready for tenancy between February and October 2016. An all-encompassing management service will be administered onsite to ensure a consistent and high standard of service.
Alex Greaves, Head of Residential Investment at M&G Real Estate, comments: “We very much welcome this initial transaction with Crest Nicholson and look forward to working with them on other schemes. We believe this to be the first transaction of its kind between an institutional investor and a listed house builder, marking a major opportunity for institutional investors seeking access to the UK residential sector. Our residential strategy provides stable, income-driven returns for investors and, in time, thousands of much-needed, well-managed rental properties.
Source: Redwood Consulting