Universities Superannuation Scheme (“USS”) and Places for People, today announced that they have entered into a £330m joint venture (“JV”) agreement to invest in the UK private rented sector (“PRS”). USS will provide the core funding for the partnership, whilst PfP Capital will act as Asset Manager, with Touchstone, Places for People’s specialist property management business, managing the portfolio on a day-to-day basis.
PfP Capital announced its intention to launch a fund in March 2017, to invest in a diversified portfolio of PRS assets across the UK. Following dialogue with a range of investors, USS was selected as PfP Capital’s preferred partner, funding the whole of the original investment target with Places for People holding a 10% stake in the joint venture.
The JV will acquire a seed portfolio of residential assets from Places for People for c.£150m, with an option to acquire a further c.£10m of similar assets post completion. The portfolio includes a range of modern, mid-market properties, a high occupancy rate and wide geographical spread across the UK.