Redrow has done its second forward-funding deal with a PRS developer, in a further sign of the willingness of housebuilders to pre-sell blocks.
M&G Real Estate has paid £82.7m to take 186 new homes at the housebuilder’s £1.2bn, 2,900-home Colindale Garden scheme in Colindale, North London.
The price works out at £444,623 per flat on average.
The deal was done on behalf of the M&G UK Residential Property Fund. It is M&G’s third PRS transaction of the year, and brings its total number of homes up to 2,500.
Alex Greaves, head of residential investment at M&G Real Estate, said: “This new deal with another top UK housebuilder increases our development pipeline, offering our investors the opportunity to continue capitalising on the UK’s rapidly growing private rental market.
“We look forward to continued deals of this stature in the sector, providing investors with the chance to increase their exposure to the residential market.”
In 2016, Redrow sold 211 homes on the site to L&Q for the rental market.
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