German fund manager Patrizia Immobilien has begun raising its first dedicated fund targeting the UK private rented sector.
The company is aiming to raise £250m for the fund, which has already attracted interest from several institutional investors.
Patrizia is a major player
in the more established German PRS market and it is seeking to leverage its domestic experience to attract investors into the fund.
It currently manages more than 80,000 flats valued at more than €7bn (£499m), in Germany, France, Holland and Denmark.
Patrizia unveiled its first UK PRS scheme in May this year, a 500-home development within the 20-acre mixed-use First Street in Manchester.
The PRS development will be one of the seed assets in the fund.
It will target further PRS assets in major regional cities and is expected to take on modest gearing.
London opportunities will also be considered, subject to their ability to deliver the targeted 10% returns.
Patrizia is one of a handful of international fund managers attempting to crack the UK rental market and joins a host of British institutions currently raising or deploying dedicated PRS funds.
Other international players in the UK PRS market include LaSalle Investment Management, Greystar, M3 Capital, Dutch pensions giant APG and Swedish company Akelius as well as several US private equity investors.
Patrizia declined to comment.
