Schroder Real Estate and Palmer Capital have launched the Residential Land Partnership fund with a £30m first close.
The five-year fund, which is expected to raise £125m in total, will acquire and redevelop residential sites to target the undersupply of housing across the UK. It aims for a 12-15% IRR over its lifetime.
Following its first close, RLP has secured a pipeline of about £40m of investments.
It is the seventh partnership fund Schroder Real Estate has launched to target specialist sectors that it believes have been undersupplied or will benefit from demographic change. The latest fund will take total assets committed to these vehicles to £1bn.
Graeme Rutter, head of Schroder Real Estate Capital Partners, said: “These partnerships allow us to access niche strategies in areas of the market that are benefitting from structural growth and which have delivered consistent outperformance for our clients.
“The demand for residential land is inextricably linked to demographic trends that are driving real estate usage and future plans. We are delighted to be partnering with Palmer Capital, a property expert with a network of operating partners across the UK providing granular local access and a proven track record of successfully delivering this strategy.”
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