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UK: CBRE Investment Management and Moda Living have launched a UK single family rental (SFR) strategy, backed by an initial £400 million of available capital.
The strategy has been established to address growing demand from residents and institutional investors for professionally managed, high-quality, attainable single family housing across the UK. The strategy targets the delivery of purpose-built homes at scale, responding to the chronic undersupply of quality rental homes.
CBRE IM and Moda will co-invest in the platform. The partnership combines CBRE IM’s residential platform with access to a substantial residential land bank of more than 25,000 plots controlled by Moda’s parent company, Caddick Group. This is alongside the ability to leverage CBRE IM and Moda’s full operational platform to target enhanced return opportunities across both standing assets and development.
The strategy has a clear ambition to grow to £2 billion in value over time, supported by both the proprietary land pipeline and selective acquisitions from third-party housebuilders. This multi-tiered sourcing capability provides flexibility throughout cycles and will give investors the ability to access opportunities not typically available via a conventional market approach.
“Single family housing represents a compelling long term opportunity, supported by strong demand fundamentals and a chronic undersupply of high quality rental homes,” said Andrew Davey, head of UK residential strategies at CBRE Investment Management. “This strategy is the result of significant engagement with our investment partners. It combines our institutional investment and asset management expertise with Moda Living’s established development and operational platform to deliver high quality, professionally managed homes at scale. We believe our approach will deliver a truly differentiated approach for both our investors and residents.”
Johnny Caddick, CEO of Moda Living, added: “This partnership marks an important step in scaling the delivery of institutional-grade single family housing across the UK. By investing alongside CBRE IM and aligning with patient, core capital, we can take a long-term approach to delivery, bringing forward a significant pipeline of well-designed homes at scale into an underserved market with proven fundamentals. This will allow us to maintain a focus on quality and consistency, creating places designed for long-term living while supporting stable, sustainable performance for investors.”
Highlights:
- CBRE Investment Management and Moda Living have launched a UK single family rental (SFR) strategy
- Backed by an initial £400 million of available capital, the platform aims to grow to £ 2 billion in value
- The partnership combines CBRE IM’s residential platform with access to a substantial residential land bank of more than 25,000 plots controlled by Moda’s parent company, Caddick Group
