Rental residential company KCR Residential REIT PLC and brownfield regeneration specialist and housebuilder Inland Homes PLC are forming a strategic relationship focused on the South and South East regions of the U.K.
The companies have identified a more than £100 million pipeline from Inland's present portfolio, including investment properties, units under construction and land with planning consent.
Inland plans to build a long-term minority shareholding in KCR with these transactions, aimed at gaining exposure to the build-to-rent sector.
The agreement gives KCR the right of first refusal over the initially identified Inland assets. KCR may also acquire parcels that have consent for residential construction with a simultaneous, fixed-priced construction contract being awarded to Inland. Inland will have first right of refusal to undertake any associated construction contract following the sale of an asset to KCR.
KCR expects to acquire the assets through a combination of cash and equity.
