PGIM Real Estate, the US$208.7bn real estate business of PGIM and Osborne Developments, the development arm of the Osborne Group announce the acquisition of a site in central Reading to develop Build to Rent homes. This is the joint venture’s first investment since its launch earlier this year – targeting Build to Rent opportunities in the South, Southeast and Southwest of England.
The Reading site, which is currently a vacant office building and car park in a sustainable location, benefits from a current planning application to deliver 131 homes. Construction is due to begin in 2023 with completion expected in early 2025.
“I am delighted that we have acquired this excellent site in Reading on behalf of our joint venture with PGIM Real Estate. Reading is one of the top performing economies in the UK and benefits from excellent transport links, including the recently opened Elizabeth Line.
“New professionally managed rental housing is a vital part of housing supply. Recent economic pressures reinforce our business model of a single vehicle to bring new homes forward and we look forward to seeing the first residents make this development their home.”Ryan Harris, Head of Land and Investment, Osborne Developments
The completed development will meet the joint venture’s environmental targets and be directly owned and operated. The design of the Build to Rent scheme will incorporate high environmental and social credentials including photovoltaic panels, electric vehicle charging points, shared internal amenity spaces and roof top gardens.
The joint venture between PGIM Real Estate and Osborne Developments is being funded in part by PGIM Real Estate’s European value-add strategy, demonstrating it’s commitment to bringing high-quality Build to Rent accommodation to the market. To address the living needs of a new generation, the team continues to focus on Build to Rent in the affordable/mid-market space as a high growth long-term strategic conviction.
“The UK residential sector continues to offer defensive fundamentals and attractive long-term growth potential, despite the recent short-term market volatility. Demand remains robust for these high-quality homes in areas with supply shortage, such as Reading. We are delighted to make our first investment for the venture and look forward to working with the experienced team at Osborne Developments to invest in further strategic sites.”Paul Stanford, Head of UK and Ireland, PGIM Real Estate