Singaporean developer backs UK PRS expansion

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.” To send feedback, e-mail emma.rosser@egi.co.uk or tweet @EmmaARosser or @estatesgazette