Thriving Investments secures £100m equity for PRS strategy

The commitment reflects continuing support for Thriving Investments' strategy and will accelerate its targeted delivery of 20,000 predominantly single-family homes in the next ten years.

The Coopers Edge single-family Build to Rent development - part of Thriving Investments' Picture Living portfolio | Universities Superannuation Scheme | BTR News
The Coopers Edge single-family Build to Rent development - part of Thriving Investments' Picture Living portfolio.

Fund manager Thriving Investments has secured a further £100m of equity from one of the largest pension schemes in the UK – Universities Superannuation Scheme (USS) – for its flagship private rented sector (PRS) strategy Picture Living.

The latest equity will support the the company’s ambition to grow the Picture Living portfolio to over 2,000 homes by the end of 2024, delivering positive, place-based impact, whilst reflecting the continued demand from UK pension funds for exposure to income focussed real estate.

Since Thriving Investments launched Picture Living in 2018, it has currently amassed a portfolio of c.1,800 single-family and multifamily Build to Rent homes, of which c.180 are currently under development. The additional USS commitment follows the publication of last month’s Savills report, revealing that nearly £250bn will need to be invested in UK housing to solve the growing rental crisis, with one million rental homes needed between now and 2031 to meet demand.

“This commitment extends our partnership with one of the UK’s largest pension schemes and reinforces our strategy to date as a differentiated fund manager with a social conscience, delivering much needed single-and-multifamily home-led communities across the UK. Solving the UK’s rental crisis has become an issue of national importance, and one where it has become increasingly apparent that the solution to delivering homes at the scale and pace required lies with institutional capital and fund managers. Our focus now is to deploy the capital into new opportunities, leveraging our strong housebuilder relationships to grow the portfolio to over 2,000 homes.”

Jamie Younger, Fund Manager, Picture Living

Picture Living has a mandate to deliver new, predominantly single-family, homes for rent in areas that have strong transport links and community infrastructure. Its focus is on schemes or portfolios of 30 to 80+ homes. Touchstone – the specialist property management business of Places for People – manages the current portfolio on a day-to-day basis.

“We continue to increase our exposure to asset types which provide resilient and stable cash flows that align with the long-term pension promises we make to our members, plus benefit from strong macro tailwinds in the sector. Picture Living complements our other investments in the Living sector including purpose-built student accommodation (PBSA), equity release, shared ownership,and residential development lending.”

Alex Turner, Head of Property, USS

The mandate aligns with Thriving Investments’ wider commitment to create and regenerate residential-led communities across England and Scotland through both an environmental and social lens, with every home in the portfolio targeting an EPC B or higher rating.

Alongside the appointment of Jamie Younger as Fund Manager for Picture Living, 2023 saw c.£45m of original capital committed on behalf of the strategy to forward fund over 100 single-family Build to Rent across four UK schemes in London and the Southeast.