Investment firm KKR and Apache Capital have agreed to invest £610m to fund build-to-rent (BTR) housing projects in core cities across the UK.
The move comes after the two companies formed a joint venture to create a BTR multifamily housing investment platform.
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KKR said that the JV has already identified sites in Birmingham, Brighton and Hove, and London for the housing projects. These projects will be developed and operated by Moda Living (Moda).
KKR director Rosa Brand said: “We are excited to work alongside Apache Capital, and Moda Living, both highly experienced strategic partners with excellent track records, over the long term, to deliver a best in class portfolio in the build-to-rent residential sector, which remains a thematic priority for KKR.”
The partnership has a development pipeline worth £1.7bn to deliver more than 4,000 apartments.
Apache Capital CEO and co-founder John Dunkerley said: “Our strategic partnership with KKR demonstrates the growing maturity of the UK build-to-rent sector, which continues to attract global institutional capital thanks to its favourable demand-supply dynamics and defensive, counter-cyclical characteristics.
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By GlobalData“This collaboration is consistent with our strategy of creating a premium product marked by high levels of service and amenity provision and we look forward to seeing the projects completed.”
KKR said its investment in the JV was made through its KKR Real Estate Europe Partners Europe II, a $2.2bn fund focused on investments in Western European real estate projects.
Moda Living managing director Tony Brooks said: “With the backing of Apache Capital and KKR we will deliver the next generation of build-to-rent neighbourhoods that will set new standards for style and service while meeting the growing demand for high quality rental housing that is responsive to modern lifestyles.”
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The partnership has development pipeline worth £1.7bn. Credit: EJ Yao/Unsplash.
