M&G Real Estate has agreed a partnership with assisted living developer Birchgrove to create a £200m rental portfolio over five years.
The fund manager has acquired two schemes from Birchgrove for £69m, on behalf of the £1.2bn M&G UK Residential Property Fund, and aims to invest further funds as the pair grow the portfolio. Birchgrove will manage the schemes.
The first properties comprise 125 flats in Sidcup in south-east London (pictured) and Woking in Surrey.
Birchgrove was launched in 2017 by Bridges Fund Management to develop purpose-built accommodation around the M25, catering to people seeking to downsize or move out of London.
Alex Greaves, head of UK and European living at M&G, said: “The principle of renting a retirement home instead of owning a property at this key life stage has significant merits.
“Individuals can downsize and free up housing stock for the next generation of buyers and rid themselves of the administrative and physical burden of owning a house. It also offers increased flexibility in terms of the different levels of support and provision required to live longer lives in safe, thoughtfully designed communities.”
Honor Barratt, managing director of Birchgrove, added: “[This long-term partnership] will not only benefit Birchgrove’s existing residents; it will also enable us to build and operate more beautiful homes and communities for those of us who want to join our quiet rental revolution.”
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