Osborne strikes up £250m BTR partnership with US investor

News | 19-01-2022

UK construction group Osborne has formed a joint venture with PGIM Real Estate to develop build-to-rent housing schemes across southern England.

The joint venture will put up approximately £250m of capital towards the strategy of acquiring land and delivering build-to-rent (BTR) developments in urban settings in the southeast, south and southwest.

Over the past six years the Osborne Group has delivered more than 3,500 student beds as well as 1,250 homes for its own development business and other investors. The business is now seeking to focus on growing its BTR 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.”

PGIM Real Estate is the real estate investment and financing business of PGIM, the US$1.5 trillion investment management business of Prudential Financial Inc, which is listed on the New York Stocl Exchange. (It is nothing to do with the UK’s Prudential Assurance, which is part of M&G).

Earlier this year PGIM Real Estate launched a UK affordable housing fund to develop single-family homes. In 2021 to date it has invested in more than 1,000 residential units in the UK across various funds and strategies, which includes a recent transaction between PGIM Real Estate and Osborne Developments in central Brighton, a scheme that 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.”

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