PfP Capital’s PRS platform forward funds development of 63 homes

Picture Living recently took full ownership of 106 single family homes across three schemes in Market Harborough, Warwick and Derby, all delivered by Avant Homes.

Progress is also being made at Heyford Park, Bicester, which comprises 100 homes, where the first homes are expected to be available to residents in early 2024.

PfP Capital said that with “strong end user demand and growing appetite from house builders to de-risk their schemes”, Picture Living is looking to grow the portfolio over the next 12 months.

Running in parallel with its acquisition strategy has been the sale of two portfolios, Spark and Seville, which has enabled the recycling of capital to target new single family homes, PfP Capital said.

PfP Capital said the transactions followed the recent appointments of Jamie Younger as fund manager with responsibility for Picture Living, and James Nicholls as investment manager.

Mr Younger joined in May from Patrizia (formerly Rockspring Property Investment Managers), where as head of transactions for UK and Ireland he led a seven-strong team.

Meanwhile, Mr Nicholls joined PfP Capital in December 2022 from Leaf Living, a firm owned by Regis and Blackstone that delivers family homes for rent.

Mr Nicholls said: “We are delighted to have exchanged on our next deal with Vistry Group and partnered for the first time with Dandara and we look forward to working closely with both companies as we deliver each respective scheme.

“We gladly align ourselves with like-minded firms, allowing us to leverage each other’s strengths and expertise to bring more professionally managed rental homes to the market.”

Mr Younger said: “With rising interest rates making homeownership more difficult for people financially, the demand for good-quality rental products in the right locations has never been higher.

“We are continuing our ambitious regional PRS pipeline on behalf of our institutional capital partners, with Picture Living closing in on 2,000 homes. 

“We will continue to invest in high-quality homes for rent working alongside house builders and developers to help alleviate the chronic housing shortage in the UK.”

Picture Living had an initial equity commitment of £330m and, on close, acquired a seed portfolio of residential properties in the PRS for around £150m from Places for People.

USS provided 90 per cent of the initial equity commitment, with Places for People holding a 10 per cent stake.

Touchstone, part of Places for People Group, provides the property management.

According to PfP Capital’s website, Picture Living has a mandate to invest in “high-quality new or modern homes for rent across the UK”.

It said the fund is “focused on minimising risk whilst delivering a stable income and capital value return to its investors from day one, by targeting a mix of houses and apartments in the private rented sector”.

In April, PfP Capital formed a £390m joint venture with social impact investor Housing Growth Partnership to build up to 1,200 sustainable homes.