PGIM Real Estate has made a second acquisition in the UK residential sector on behalf of the investors in its European core strategy. PGIM Real Estate is the real estate investment and financing business of PGIM, the US$1.5 trillion global investment management business of Prudential Financial, Inc. (NYSE: PRU).
PGIM Real Estate will forward fund a multifamily development of 135 private homes for rent in conjunction with Osborne Developments. The property is located on Pelham Street in Brighton, East Sussex, and will be developed with strong environmental, social and governance (ESG) credentials, including photovoltaic panels for green energy supply alongside communal gardens, gym and co-working spaces. Osborne Developments, a UK-based development company, will deliver the property alongside Osborne Construction, acting as Main Contractor, with practical completion anticipated in 2023.
The acquisition is in line with PGIM Real Estate’s residential investment philosophy of selectively acquiring assets in markets with a demonstrable undersupply of professionally managed accommodation and with high barriers to entry for development. Brighton is a city with a vibrant culture and the development will transform an under-utilized brownfield site into much-needed aspirational homes to rent for the community.
Paul Stanford, Head of UK and Ireland at PGIM Real Estate comments: “This acquisition, which is our second residential rental transaction in the UK, aligns perfectly with our European core strategy. The UK residential sector offers defensive fundamentals and attractive long-term growth potential. The development is an important component in the regeneration of Brighton’s New England Quarter and will create a thriving community in the heart of the city, a sub-market that has suffered from a significant under-supply of highquality rental accommodation over the years. We are delighted to be working with Osborne Developments and look forward to together delivering a development with high social and environmental standards in mind.”
Andy Steele, Group CEO at Osborne comments: “We are delighted to be working with PGIM Real Estate, one of the largest global investors in the residential sector. This project is a further example of the time and cost benefits to our developer/contractor model. Brighton is a challenging city to secure land for purpose built private rented homes and we only recently finalised the land acquisition, and achieved planning. We are starting on site immediately to deliver this fantastic scheme of build to rent homes in the centre of Brighton”.