PGIM Real Estate has made three single-family housing acquisitions, located in south and south-west England, on behalf of its UK affordable housing strategy.
In Littlehampton, West Sussex, it has purchased a scheme comprising 73 homes. A further two acquisitions have been made in Exeter, Devon, and St Austell, Cornwall.
PGIM Real Estate’s UK affordable housing strategy focuses on acquiring and operating single-family homes for let at affordable rents.
Since its launch in December 2020, the strategy has committed more than £310m across 31 schemes, providing 1,800 homes. The majority of its portfolio is completed and let.
Oscar Kingsbury, portfolio manager of the UK affordable housing strategy at PGIM, said: “At a time when UK residential total returns have strengthened and are forecast to grow into 2025, these transactions further diversify the strategy’s existing portfolio, which aims to deliver long-term, resilient returns for its investors.
“UK residential remains at the top of many investors’ allocation wish lists for 2025. This is no great surprise, given the market dynamics that exist. However, we feel investors should also be focusing on the affordability of residential rents and the sustainability of future rental growth. Our strategy is well-placed, delivering much-needed new, energy-efficient homes into the rental market, but at price points that are affordable. We believe this will put the strategy at an advantage over the longer term.”
Vandermolen Real Estate represented PGIM in the acquisition.
Send feedback to Akanksha Soni
