PGIM Real Estate has acquired a large portfolio of UK single-family homes located in Manchester and Liverpool from Goldman Sachs Asset Management.
The acquisition has been made via PGIM Real Estate’s UK Affordable Housing strategy.
The portfolio comprises 918 single-family rental homes located across 15 schemes. The portfolio aligns with the aims of PGIM Real Estate’s UK Affordable Housing strategy as it delivers private rental housing at affordable rents for working families and co-renters.
PGIM said the investment allows the strategy to continue its focus on the environmental, social and governance (ESG) provision, with the aim to improve the energy efficiency of the homes.
Since its launch in December 2020 and with this acquisition, the strategy has committed nearly £300 million across 27 different housing schemes, providing just over 1,500 homes.
This makes PGIM Real Estate one of the largest private owners of single-family rental housing in the UK.
Charles Crowe, senior portfolio manager of the UK Affordable Housing strategy and head of UK Investments at PGIM Real Estate said: “We are delighted to have made this acquisition as it ensures that much-needed rental housing is available to tenants at affordable rents, at a time of high inflation and a cost-of-living squeeze. Despite challenging market conditions, our conviction in UK single-family rental remains strong, as the sector continues to provide a mutually beneficial opportunity to deliver safe, high-quality homes for families, whilst providing sustainable income for our investors.”
Chris Semones, managing director in the real estate business at Goldman Sachs Asset Management, said: “We are pleased to have concluded the sale of this high-quality, professionally managed rental portfolio to PGIM Real Estate. Continued investment in the UK housing sector is crucial to delivering much-needed supply of high-quality private rental homes. We would like to thank Pitmore for their partnership in managing the portfolio.”
Knight Frank advised and acted on behalf of PGIM Real Estate, and Savills acted on behalf of Goldman Sachs Asset Management.