March 06 2018

PFP Capital launches £550 million build-to-rent fund

PfP Capital, the alternative asset manager established by Places for People Group, has today announced that it intends to launch a fund which will focus on investing in high-quality build-to-rent opportunities throughout the UK. The PfP Capital Build-to-Rent Fund, which will be managed by Alex Notay, aims to raise around £550 million.

The build-to-rent (“BTR”) fund will be seeded with three major residential development schemes across the UK, valued at approximately £150 million, which will be forward-funded through a special purpose vehicle, prior to introducing long-term capital through the Fund.

Once established, the Fund will look to forward-fund additional development opportunities comprising at least 300 units in which it can leverage Places for People Group’s significant expertise. Once fully invested, it is expected that the Fund will have forward-funded 3000 homes across six to eight high-quality, large-scale schemes targeting investment in regional towns and cities.

The BTR Fund remains separate to PfP Capital’s traditional PRS-focused strategy, . The Fund strategy is to identify and invest in sites in which the team can use its expertise to seek significant capital value growth through large-scale, purpose-built and professionally managed BTR communities.

Alex Notay, Director of Product and Service Innovation at Places for People Group, will move across to join PfP Capital to manage the new BTR fund and support the broader development offering. Alex is well-known for her role as Editor of the ULI UK Best Practice Guides on Build to Rent (2014, 2016), often cited as ‘the industry Bible’, and has extensive BTR consultancy experience having advised some of the highest profile residential investors in the UK, US and Australia. In her previous role, Alex was responsible for driving innovation and streamlining processes across the Places for People Group.

Following the launch of this Fund, PfP Capital will continue to explore a number of options to give the institutional investor community access to a range of housing propositions through its socially-conscious fund management approach.

Alex Notay, Fund Director, PfP Capital, said: “This is an exciting time for the sector and the new fund will give investors an unparalleled opportunity to invest with one of the most experienced teams and a manager with a socially-conscious DNA. Institutions recognise that the UK build-to-rent sector has potential to deliver significant, stable returns over the long-term but also that social impact is now a genuine priority for investors. PfP Capital is uniquely qualified to capitalise on that opportunity by leveraging the Group’s breadth of experience to deliver 3000 quality homes in professionally managed Build to Rent communities. I am delighted to be join PfP Capital at such an exciting time for the business and the industry as a whole.”

Chris Jones, Managing Director, PfP Capital, added: “We remain committed to exploring new and innovative ways to deliver investment opportunities within UK real estate that match the varying risk/return profiles of institutional investors. We see huge opportunity in being able to offer differentiated products through our PRS and BTR strategies that will offer residents greater quality and choice. There is growing interest in the variety of UK housing tenure’s as an investment asset class and we will continue to develop our business to provide solutions to this demand rooted in Places for People’s socially-driven objectives.”

The above is intended as a mere statement, it does not constitute or form part of, and should not be construed as, an offer, invitation or inducement to purchase or subscribe for securities nor shall it or any part of it form the basis of, or be relied on in connection with, any contract or commitment whatsoever. This statement does not constitute either advice or a recommendation regarding any product.

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