PGIM Real Estate make first acquisition for UK Affordable Housing Fund

PGIM Real Estate has made its first acquisition for its UK Affordable Housing Fund – acquiring sites from Wise Living.

Owen exterior Build to Rent for the UK Affordable Housing Fund - PGIM Real Estate | Wise Living | BTR News

PGIM Real Estate has made the first acquisition for its recently launched UK Affordable Housing Fund – a portfolio of eight single-family for-rent residential housing sites acquired from Build to Rent provider, Wise Living. PGIM Real Estate is the real estate investment business of PGIM – the US$1.5tn global investment management businesses of Prudential Financial, Inc.

PGIM Real Estate has acquired the portfolio direct from Wise Living – and they will continue to work closely going forward in order to source new opportunities together. Wise Living will also continue to manage the stabilised Build to Rent properties and the developments once complete.

“This is a significant transaction and marks the beginning of our new collaboration with PGIM Real Estate. We will be working together to secure further sites for it to invest in over the coming months and years. It’s an exciting project that will be a key part of our ongoing strategy to deliver rental homes to undersupplied suburban areas in the UK. The partnership is underpinned by the fact that we share the same values and view of the private-rental-sector and will enable both businesses to push forward with plans to help meet the growing demand from UK families for quality rental homes.”

Andy Deller, Chief Executive Officer, Wise Living 

The eight Build to Rent sites are located in seven cities and towns across the Midlands and North of England. The portfolio comprises of five stabilised assets and three development sites covering 314,000 sq ft. Combined, the sites will deliver 433 units comprising predominantly of two and three bedroom homes. All eight sites are close to schools, supermarkets, local employers, key amenities and leisure offerings – as well as good access to road, rail and bus transport.

Unveiled in February, PGIM Real Estate’s UK Affordable Housing Fund invests in and develops single family homes with a focus on rents that are affordable for working people and families across the UK. It raised £190m of initial capital from the Northern LGPS and Brunel Pension Partnership. The Fund is managed by an experienced team of investment professionals – including senior portfolio manager, Paul Dennis-Jones and Head of UK Transactions, Charles Crowe.

“We are delighted to make our first investment for the strategy, and to work with the experienced team at Wise Living. At PGIM Real Estate, we have a strong track record in affordable housing, making our first investment in the UK back in 2016. Our recently launched strategy aims to alleviate the major supply/demand imbalance within UK affordable housing, benefitting working people and families, as well as income-focused investors. Despite recent economic uncertainty as a result of Covid-19, suburban areas and smaller towns with a greater emphasis on housing over apartments are reporting much stronger rental growth than city centre markets.”

Charles Crowe, Head of UK Transactions, PGIM Real Estate