11 Oct 2011, 4:59 pm
Bouygues and Grainger have developed the fund which will enable institutional investors to invest in the private rented sector (PRS). They hope to raise an extra £150 million from institutional lenders on top of their own contributions.
Investors will receive a coupon-based return during the development and investment stages, and then a return based on capital appreciation.
The Fund will hold a portfolio of purpose built PRS development sites, which will be developed by Bouygues in phases over the next three and a half years.
The fund has already lined up four sites with permission for over 1,000 homes, in Barking and Canning Town, east London, and in Maidstone, Kent, Building reports.
At least two of the sites were previously publicly owned, and are included in the Public Land Initiative that housing minister Grant Shapps announced last week.
Bouygues will manage the investment and construction process, while Grainger will undertake the operation of the portfolio after completion, including property management, lettings, facility management, and fund and asset management.
