Invesco Real Estate has launched and made a first close on a dedicated UK PRS fund with an investment potential of £250m.
The fund launched with investment from five institutions located in Australia, Canada and the UK and will use a combination of debt and equity to invest in the growing PRS sector.
Invesco said it expected to make further closes on the fund over the coming 12 months.
The company, which has been investing in large-scale residential investments across the UK and Europe over the past 18 months, will seek to take advantage of the growing imbalance in the UK’s residential supply and demand.
Invesco has identified a pipeline of opportunities across the South East and will seek to invest in the next few months.
Simon Redman, managing director – client portfolio management, said: “With less than 5% of the UK PRS owned by institutional investors in the UK (compared to more than 25% in the US, for example) research by Invesco Real Estate earlier this year suggests that UK institutional investors are significantly underinvested in this fast-growing and high-performing real estate asset class.
“The new fund seeks to respond to the clear opportunity by utilising IRE’s 30 years of experience as one of the world’s largest and most experienced investors in the residential sector and applying it to the UK.”
To send feedback, email mike.cobb@estatesgazette.com or tweet @MikeCobbEG or @estatesgazette
