PGIM Real Estate and Osborne agree multi-million-pound joint venture in Build to Rent
Dec 9, 2021
6 mins
PGIM Real Estate, on behalf of our European value-add strategy, has agreed to enter into a joint venture with Osborne Developments for a multi-million-pound investment strategy targeting Build to Rent (BTR) multifamily opportunities in the South, Southeast and Southwest of England. 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).
The venture will provide circa £250m of capital towards the strategy of acquiring land, delivery and stabilisation of new BTR urban developments. The significant investment in the joint venture recognises the cost and programme efficiencies of integrated partnerships. The venture itself supports PGIM Real Estate’s significant investment management capabilities alongside Osborne’s strong developer/contractor platform in order that the venture can grow its activities in the Build to Rent sector.
This partnership is a demonstration of PGIM Real Estate’s commitment to bringing high-quality affordable accommodation to the market. To address the living needs of a new generation, the team continues to focus on BTR in the affordable space as a high growth long-term strategic conviction.
Earlier this year, PGIM Real Estate announced the launch of a strategy to develop affordable single-family homes in the UK, further showcasing its wide-ranging expertise in the UK property market, whilst leveraging its global and local experience in ESG. In 2021 to date, the firm has invested in over 1,000 residential units in the UK across various strategies, which includes the recent transaction between PGIM Real Estate and Osborne Developments in central Brighton, a scheme which is currently under construction.
Charles Crowe, Head of UK Transactions at PGIM Real Estate said: “The UK residential sector continues to offer defensive fundamentals and attractive long-term growth potential. Mobility is valued more than ever, and the most recent generation are renting much more than in the past, driving the need for the development of modern, first-rate affordable living spaces. This venture will see significant capital being deployed to build and develop these high-quality homes in areas with supply shortage, whilst creating value for our investors. We are delighted to work with an established developer such as Osborne and look forward to the venture.”
Osborne Developments is part of the Osborne Group and specialises as a developer/contractor in the student accommodation and residential sectors.
Over the past 6 years the group has delivered over 3,500 student beds, and 1,250 homes for its own development business and other investors. The business is now seeking to focus on growing its build to rent activities through this partnership with PGIM Real Estate. David Walters, Director of Osborne Developments, said: “Following the recent sale of our Infrastructure business, this joint venture is part of our strategic plan focusing on the future
success of Osborne. PGIM Real Estate’s substantial investment in this JV is a fantastic show of confidence in our business and we have a strong management team with a wealth of experience in place to take it forward. This venture with PGIM Real Estate allows us to focus on the current pipeline and securing new BTR opportunities. This a fundamental part of our developments business, and complemented by our other activities, including student accommodation and single-family housing utilising our off-site manufacturing business.”
Value-Add Real Estate
Appreciation-driven returns, primarily through development and repositioning.
Learn more
More News
The latest news and media about PGIM Real Estate.
View all