PfP Capital, the alternative asset manager established by Places for People Group, has announced that it intends to launch a fund which will focus on investing in high-quality build-to-rent opportunities throughout the UK. The PfP Capital Build-to-Rent Fund, which will be managed by Alex Notay, aims to raise around €619m (£550m).
The build-to-rent (“BtR”) fund will be seeded with three major residential development schemes across the UK, valued at approximately €168.8m (£150m), which will be forward-funded through a special purpose vehicle, prior to introducing long-term capital through the Fund.
Once established, the Fund will look to forward-fund additional development opportunities comprising at least 300 units in which it can leverage Places for People Group’s significant expertise. Once fully invested, it is expected that the Fund will have forward-funded 3000 homes across six to eight high-quality, large-scale schemes targeting investment in regional towns and cities.
The BTR Fund remains separate from PfP Capital’s traditional PRS-focused strategy. The Fund strategy is to identify and invest in sites in which the team can use its expertise to seek significant capital value growth through large-scale, purpose-built and professionally managed BTR communities.
Alex Notay, Fund Director, PfP Capital, said: “This is an exciting time for the sector and the new fund will give investors an unparalleled opportunity to invest with one of the most experienced teams and a manager with a socially-conscious DNA. Institutions recognise that the UK build-to-rent sector has potential to deliver significant, stable returns over the long-term but also that social impact is now a genuine priority for investors. PfP Capital is uniquely qualified to capitalise on that opportunity by leveraging the Group’s breadth of experience to deliver 3000 quality homes in professionally managed Build to Rent communities. I am delighted to join PfP Capital at such an exciting time for the business and the industry as a whole.”
Chris Jones, Managing Director, PfP Capital, added: “We remain committed to exploring new and innovative ways to deliver investment opportunities within UK real estate that match the varying risk/return profiles of institutional investors. We see a huge opportunity in being able to offer differentiated products through our PRS and BTR strategies that will offer residents greater quality and choice. There is growing interest in the variety of UK housing tenure’s as an investment asset class and we will continue to develop our business to provide solutions to this demand rooted in Places for People’s socially-driven objectives.”
