LGPS Funds back social housing initiative

PGIM Real Estate has expanded assets in its affordable housing fund with the acquisition of eight single family for rent residential housing sites.

The fund was launched in February with initial capital of £190 million from Northern LGPS and Brunel Pension Partnership.

This initial portfolio was acquired from build-to-rent provider Wise Living and is located in seven cities and towns across the Midlands and the North of England.

The sites will provide 433 units, largely of two and three bedroom homes. Each site has good access to road, rail and bus transport, and is close to local employers, schools, supermarkets and other key amenities.

Residential rental growth has remained strong outside central London, despite the impact of Covid-19. PGIM believes the UK residential property market will deliver solid long-term income driven returns for investors, as residential rents track household income growth over the coming years.

“We have a strong track record in affordable housing, making our first investment in the UK back in 2016,” says Charles Crowe, head of UK transactions at PGIM Real Estate.

“Our recently launched strategy aims to alleviate the major supply/demand imbalance within UK affordable housing, benefiting working people and families, as well as income-focused investors.”