Internos Global Investors is partnering a UK housing provider as it looks to attract institutional capital into the (PRS).
The fund manager has entered a joint venture with Catalyst for Homes (C4H) to offer direct and indirect investment vehicles to institutions.
Internos said the joint venture was evaluating 152 residential development sites across greater London, with a view to selecting 鈥渢he most attractive for the institutional market鈥�.
The firm said suitable sites would need to provide asset management potential and up to 30-year income returns.
Investments, it added, could attract allocations from 鈥渘ot only real estate but also infrastructure and fixed income quotas鈥�.
Andrew Taylor, Internos head of UK residential investment, said the disparity between private amateur landlords and institutional investors was a motivating factor behind the firm鈥檚 decision to partner C4H.
Citing Investment Property Forum research, Taylor said only 2% 鈥� or 拢18bn (鈧�24bn) 鈥� of the 拢837bn sector was currently in the hands of institutional investors.
鈥淭his disparity provides a significant opportunity to grow institutional investment with professional management in this previously overlooked market,鈥� Taylor said.
鈥淐ouple this with a worrying outlook for global equity and fixed income returns, and the UK residential market provides an attractive proposition for risk-averse or return-hungry investors.鈥�
