Crest Nicholson and M&G Real Estate have partnered for the fifth time to fund the construction of a second phase of private rented sector (PRS) properties in Berkshire.
The phase aims to deliver a further 104 private rental homes in Arborfield Green – a new garden village of 2,000 dwellings just a short commute from Wokingham and Reading.
With the extended partnership, the two firms will provide a total of 218 private rental homes with communal facilities, with the second phase ready for occupation in 2020. It will mark more than £115 million of deals made under the investor/house builder arrangement first established in 2015.
The M&G UK Residential Property Fund, managed by Alex Greaves, will finance the one and two-bedroom apartments. He commented: “We are very happy to partner with Crest Nicholson again to create high-quality homes providing entry level accommodation in suburban locations with top class amenities.”
“This latest partnership builds on our development pipeline and provides our investors with another opportunity to capitalise on the UK’s fast expanding private rental market.”
Chris Tinker, interim chief executive at Crest Nicholson, added: “Partnerships continue to be a major part of our growth strategy to diversify tenures and accelerate construction across some of our larger sites.”
“Working with M&G Real Estate allows us not only to reach a broader customer base through PRS, but to also deliver homes at a faster rate using modern methods of construction.”
He continued: “As housebuilders we need to make a concerted effort to partner with other experts in the industry if we are to meet the government’s ambitious new homes targets. Drawing on expertise from across the sector gives us the tools to do this at speed, without ever compromising on quality.”
Previous deals with Crest Nicholson include M&G’s £51.5 million purchase of 227 PRS units at Crest Nicholson’s Kilnwood Vale development, near Crawley in West Sussex. This marked the country’s first low-rise suburban apartment development, centred around communal spaces, including a club house, tennis court and games area. Completed and fully let in 2018, it was based on a similar model Arborfield Green.