Telford picks M&G and Invesco for BTR growth
Telford Homes has chosen M&G Real Estate and Invesco Real Estate as partners to forward fund build-to-rent developments.
M&G will be Telford’s priority partner for schemes of up to 200 homes, with an estimated end value of £75m-£100m. Invesco will have priority for schemes of more than 200 homes and over £100m.
Telford identified this split as suiting the investors’ current portfolios, with ideal investment scale preferences. M&G and Invesco have signed three-year partnership agreements, which are likely to be extended.
Telford Homes has chosen M&G Real Estate and Invesco Real Estate as partners to forward fund build-to-rent developments.
M&G will be Telford’s priority partner for schemes of up to 200 homes, with an estimated end value of £75m-£100m. Invesco will have priority for schemes of more than 200 homes and over £100m.
Telford identified this split as suiting the investors’ current portfolios, with ideal investment scale preferences. M&G and Invesco have signed three-year partnership agreements, which are likely to be extended.
Flexible arrangement
Each party will have the option to fund schemes should the priority partner opt out, and Telford will also continue to work with other investors.
Jon Di-Stefano, chief executive of Telford Homes, said: “Rental demand is increasing in London, but the supply of new homes is still constrained. New generations are demanding better-quality amenities, a better level of service and more flexible tenancies, all of which are offered by the growing institutionally owned build-to-rent sector.
“These compelling market fundamentals and the opportunity to de-risk our future pipeline with reduced capital investment give us confidence that these partnerships will help accelerate our aim to deliver a significant increase in our output of BTR homes across London.”
The tie-up with M&G builds on previous collaboration on two of the group’s schemes totalling £118m for 275 BTR homes.
Alex Greaves, head of residential investment at M&G Real Estate, said: “Commercialising the production of homes to rent at scale with a like-minded, high-quality developer of rental stock is another step closer to fulfilling M&G’s residential investment strategy.”
Invesco has invested around £1.5bn in the development of 5,000 BTR homes, with a target to increase this to £5bn over the next five years, with a 60% weighting in London and the South East.
John German, managing director of residential investments at Invesco Real Estate, said: “Our global institutional investors continue to believe in the fundamentals of the UK build-to-rent market, and we still see an increasing appetite for the sector, both in London and the wider UK market, as it provides a key investment opportunity for a diversified investment portfolio.”
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