PGIM Real Estate, Osborne establish £250m UK BTR joint venture

PGIM Real Estate, Osborne establish £250m UK BTR joint venture

PGIM Real Estate, on behalf of European Value Partners II (EVP II), has established a joint venture with Osborne Developments for a multi-million-pound investment strategy targeting Build to Rent (BTR) multifamily opportunities in the South, Southeast and Southwest of England.

The venture will provide circa £250m of capital towards the strategy of acquiring land, delivery and stabilisation of new BTR urban developments.

Earlier this year, PGIM Real Estate announced the launch of its UK Affordable Housing Fund to develop single-family homes, further showcasing its wide-ranging expertise in the UK property market, whilst leveraging its global and local experience in ESG.

In 2021 to date, the firm has invested in over 1,000 residential units in the UK across various funds and strategies, which includes the recent transaction between PGIM Real Estate and Osborne Developments in central Brighton, a scheme which is currently under

Charles Crowe, Head of UK Transactions at PGIM Real Estate said: “The UK residential sector continues to offer defensive fundamentals and attractive long-term growth potential. Mobility is valued more than ever, and the most recent generation are renting much more than in the past, driving the need for the development of modern, first-rate affordable living spaces. This venture will see significant capital being deployed to build and develop these high-quality homes in areas with supply shortage, whilst creating value for our investors. We are delighted to work with an established developer such as Osborne and look forward to the venture.”

David Walters, Director of Osborne Developments, said: “Following the recent sale of our Infrastructure business, this joint venture is part of our strategic plan focusing on the future success of Osborne. PGIM Real Estate’s substantial investment in this JV is a fantastic show of confidence in our business and we have a strong management team with a wealth of experience in place to take it forward. This venture with PGIM Real Estate allows us to focus on the current pipeline and securing new BTR opportunities. This a fundamental part of our developments business, and complemented by our other activities, including student accommodation and single-family housing utilising our off-site manufacturing business.”

Osborne Developments is part of the Osborne Group and specialises as a developer/contractor in the student accommodation and residential sectors. The business is now seeking to focus on growing its build to rent activities through this partnership with PGIM Real Estate.