The U.K.'s "burgeoning" build-to-rent sector is attracting real estate investors from the U.S., Asia and the Middle East, including the likes of Mitsui Fudosan Co. Ltd., Pimco, Lincoln Property Co. and Korean Investment Corp., Property Week reported, citing unnamed sources.
For one, Mitsui Fudosan is looking into investing in large build-to-rent projects with at least 500 homes, according to the June 2 report, which cited a source close to the company. Mitsui Fudosan is reportedly planning to develop BTR schemes itself and partner with other developers in joint ventures.
Meanwhile, Pimco, a California-based investment management firm, is poised to funnel as much as £300 million into the sector, the report noted, adding that American pension fund USAA is also eyeing investments of over £250 million in rights developments. In addition, Lincoln Property Co., a multifamily housing provider in the U.S., has reportedly posted a member of its staff in London to "help secure deals."
Korean Investment Corp., a sovereign wealth fund in Asia, might also either invest in standing stock or partner with a developer, the report noted, citing another source.
Qatar-based investor Alduwaliya was said to have approached agents about possible deals and that it is also willing to team up with another developer, the report added.
In addition, Finland-based CapMan and Local Pensions Partnership, a collaboration between local authority pension funds in London and Lancashire, are also looking into investing in the sector, the report revealed, citing another source.