Greystar, the US property company, has launched a £750m fund to target the UK’s rapidly growing build-to-rent sector, which is attracting institutional investors keen to lock in stable returns in an uncertain political environment.
The company plans to raise the equity from pension funds and insurers. Including debt it could have close to £2bn to invest in build-to-rent schemes — typically large-scale developments of private rented residential property, managed by corporate landlords.
“There’s a huge amount of interest in [build-to-rent] because of its performance as an institutional investment: it generates strong cash flow, and people always need somewhere to live”, said Mark Allnutt a managing director at Greystar.
