PGIM Real Estate & Osborne acquire Reading site for UK BTR joint venture

PGIM Real Estate and Osborne Developments have acquired a site in central Reading to develop build to rent (BTR) homes. PGIM Real Estate is the US$208.7 billion real estate business of PGIM.  Osborne Developments is the Development arm of the Osborne Group.

This is the first investment made by the two firms on behalf of the joint venture launched earlier this year targeting BTR opportunities in the South, Southeast and Southwest of England. The completed development will meet the joint venture’s environmental targets and be directly owned and operated.

The site is currently a vacant office building and car park in a sustainable location, and benefits from a current application to deliver 131 homes.  Construction will commence in 2023 and complete in early 2025. The design of the property will incorporate high environmental and social credentials including photovoltaic panels, electric vehicle charging points, shared internal amenity spaces and roof top gardens.

The joint venture is being funded in part by PGIM Real Estate’s European value-add strategy and demonstrates PGIM Real Estate’s commitment to bringing high-quality multi-family accommodation to the market. To address the living needs of a new generation, the team continues to focus on BTR in the affordable / mid-market space as a high growth long-term strategic conviction.

Paul Stanford, Head of UK and Ireland at PGIM Real Estate commented: “The UK residential sector continues to offer defensive fundamentals and attractive long-term growth potential, despite the recent short-term market volatility. Demand remains robust for these high-quality homes in areas with supply shortage, such as Reading. We are delighted to make our first investment for the venture and look forward to working with the experienced team at Osborne Developments to invest in further strategic sites.”

Head of Land and Investment at Osborne Developments, Ryan Harris commented: “I am delighted that we have acquired this excellent site in Reading on behalf of our joint venture with PGIM Real Estate. Reading is one of the top performing economies in the UK and benefits from excellent transport links, including the recently opened Elizabeth Line. New professionally managed rental housing is a vital part of housing supply. Recent economic pressures reinforce our business model of a single vehicle to bring new homes forward and we look forward to seeing the first residents make this development their home.”