PGIM Real Estate bolsters UK housing portfolio with three acquisitions

PGIM Real Estate has made three single-family housing acquisitions, located in south and south-west England, on behalf of its UK Affordable Housing strategy. With $212 billion in AUM, PGIM Real Estate is the real estate investment firm of PGIM and is the third largest real estate investment firm globally.

Oscar Kingsbury, portfolio manager of the UK affordable housing strategy, said “At a time when UK residential total returns have strengthened and are forecast to grow into 2025, these transactions further diversify the strategy’s existing portfolio, which aims to deliver long-term, resilient returns for its investors.

“UK residential remains at the top of many investor’s allocation wish lists for 2025. This is no great surprise, given the market dynamics that exist. However, we feel that investors should also be focusing on the affordability of residential rents and the sustainability of future rental growth. Our strategy is well placed, delivering much needed new, energy-efficient homes into the rental market, but at price points which are affordable. We believe this will put the strategy at an advantage over the longer term.”

In Littlehampton, West Sussex, the team has committed to acquire 73 new energy efficient homes, located near the town centre and close to schools. The scheme’s tenants will benefit from air source heat pumps, electrical car charging points and homes delivered with broadband internet included within the rents.

The two further acquisitions have been undertaken in Exeter, Devon and St Austell, Cornwall. Positioned in established, edge-of town locations, the professionally managed and energy efficient single-family homes will be delivered with solar PV panels and electrical car charging points.

PGIM Real Estate’s Affordable Housing strategy focuses on acquiring and operating single-family homes for let at affordable rents, providing high-quality housing to working families and co-renters. Since its launch in December 2020, the UK Affordable Housing strategy has committed over £310 million across 31 housing schemes, providing c.1,800 homes. The majority of its portfolio is completed and let out to tenants. This makes PGIM Real Estate one of the largest owners of operational single-family rental housing in the UK.