Venn Partners has launched the first PRS bond under a government-guaranteed programme to promote the private rented sector.
The 10-year bond aims to raise £265m, with £175m funded immediately.
The bond has been issued through PRS Finance, a wholly-owned subsidiary of Venn Partners, which aims to regularly issue bonds of varying maturities, between 10 and 30 years, targeting £3.5bn of PRS product.
Of the total £3.5bn available, £700m has already been approved. The government PRS scheme funding is open to new applications until the end of 2017. Any UK-based project aimed to be held as PRS above £10m in aggregrate value is eligible.
Housing and planning minister Gavin Barwell said: “This government is committed to supporting a bigger, better private rented sector and is providing up to £10bn government-backed guarantees to build more quality rental homes.
“This bond is an important step in strengthening the sector and increasing supply so that it meets the need of tenants well into the future.”
Paul House, head of real estate and managing partner at Venn Partners, said: “The PRS scheme, underpinned by the bond’s government guarantee and rating, is designed to provide competitively-priced financing and work around the various needs of PRS operators across the country as they cater to local demands from tenants.”
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