Fiera Real Estate UK and Packaged Living have launched a new single-family housing fund which is targeting a portfolio valued at £1bn.
Charles Allen, head of European real estate at Fiera
The open-ended, core-plus fund, Fiera Real Estate Single-Family Housing (FRESH), has secured seed capital from a group of institutional investors, enabling immediate deployment into an existing pipeline.
The fund will focus on professionally managed and sustainable rental homes across supply-constrained locations. It will specifically target deals comprising 50 to 200 homes each.
FRESH will invest in the portfolio via forward-funding and forward-commitment agreements with developers and housebuilders. It will also use the Sustainability Impact label under the UK Sustainable Disclosure Regulation.
Packaged Living currently manages around 4,000 homes across a range of co-living, multi-family and garden style units. Meanwhile, Fiera holds a portfolio of over 12,5000 homes, with £2.6bn of assets under management.
Ed Ellerington, chief executive of Packaged Living
Charles Allen, head of European real estate at Fiera, said: “FRESH provides investors with access to a highly defensive sector that continues to demonstrate resilience in this market cycle. This fund further enhances our ability to deliver stable cash flows within our diversified portfolio, marking another significant step in our growth journey.”
Ed Ellerington, chief executive of Packaged Living, added: “Single-family rental housing has evolved from a granular asset class to an increasingly mature investment opportunity that is scalable and operationally efficient.
“We will leverage our full lifecycle expertise and established track record to deliver a high-quality and sustainable housing product. This will offer downside protection, growth prospects, and measurable sustainability and impact benefits for institutional capital.”
In 2020, Packaged Living and Fiera partnered together to buy a site in Manchester for a build-to-rent development.
In January, Fiera provided a £40.8m senior debt facility to a joint venture between alternative investment firm Signal and London-focused developer W.RE to fund their City of London office project 10 Lime Street, and formed an industrial joint venture with Universities Superannuation Scheme.
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