Dutch pension fund PGGM and one of its asset managers have bought more homes as part of their build-to-rent investment in the UK where a property shortage exists.
The flats (pictured) are in Salford, a borough of Manchester, and form part of a property portfolio of build-to-rent homes that Legal & General Capital (LGC) describes as a new asset class.
PGGM and LGC, which is part of Legal & General Investment Management (LGIM) announced their joint venture in the housing-starved UK’s private rented sector in February.
The partnership will initially invest £600 million (€754 million) into building purpose-built private rental housing across the UK, providing over new 3,000 homes.
Bill Hughes, head of LGIM Real Assets, said: “Successful international comparisons [of the affordable, rental sector], such as the Netherlands, Germany and US, demonstrate to us that the UK has a long way to go and we believe that through professionalising the private rental sector we are able to encourage better standards across the board.”
©2016 fund europe