Singapore’s SLB Developments has taken a 20% stake in UK investor Pinnacle IM to acquire PRS assets in the UK.
Pinnacle aims to build a series of funds, focused on UK rental assets. SLB has exercised its option for the equity stake in the business for £90,000 as part of a diversification of the company, moving into fund management.
Pinnacle launched the open-ended UK residential fund last September, aiming to provide people with homes of different types and tenures at different stages of their lives.
The investment strategy targets middle-income renters and will look to build a portfolio of individual flats and houses in urban centres.
It promises total returns of 10-12% and a dividend yield over 4%. Assets include a 37-flat boutique development called The Residence in Bedford (pictured).
The Singaporean-listed developer has already put £2m into the fund and said it intends to make further continued investments.
Chief executive Matthew Ong said: “Despite uncertainties from the ongoing Covid-19 pandemic and outcome of Brexit, we remain optimistic about the housing market and investment demand in the UK, especially in the long-term.
“The UK PRS, backed by strong fundamentals underpinned by demographic growth and favorable supply-demand dynamics, has been a steady source of income even in tough times.”
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