CBRE Investment Management (“CBRE IM”), one of the world’s leading real assets investment managers, today announced the launch of CBRE UK Single Family HousingPartners, a newly established open-ended residential fund focussed on the development and operation of single family housing. Backed by an initial £400 million of available capital, the platform will be built on core, long-term capital.
CBRE UK Single Family Housing Partners 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 in key Scottish markets.
Central to the strategy is an exclusive partnership with Moda, whichß will co-invest in the platform. The partnership combines CBRE IM’s significant residential platform with access to a substantial residential land bank of over 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.
CBRE UK Single Family Housing Partners will, in addition, benefit from CBRE IM and Moda’s established track record in delivering and operating residential communities. This includes significant experience developing and operating quality new rental homes in Scotland through both its city centre neighbourhoods in Edinburgh and Glasgow – The McEwan and Holland Park respectively – and its single family community Vista Park, which was the first of its kind in the Glasgow region.
Moda’s work in the country has to date created more than 1,500 jobs for local people and injected £37m directly into local SMEs. The business was also a member of the Scottish Government’s Housni Task Force, which was instrumental in securing institutionally funded rental housing an exemption from proposed rental caps, clearing the way for future investment in the country, including into single family opportunities.
“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. “CBRE UK Single Family Housing Partners 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.”
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“This partnership marks an important step in scaling the delivery of institutional-grade single family housing across the UK,” said Johnny Caddick, CEO of Moda Living. “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.”
CBRE UK Single Family Housing Partners builds on CBRE IM’s long-standing residential platform investment capabilities. The firm has a 30-year track record of investing in residential real estate across Europe, with assets under management of circa €13 billion. Expertise spans affordable housing, multifamily and single family private rental housing in the UK and Europe
The new strategy is a natural extension of CBRE IM’s successful Affordable Housing proposition, which has delivered over 3,000 homes across the UK with a total net asset value of approximately £700 million. The firm also has two other dedicated residential strategies. In addition, in the Netherlands, CBRE IM is building a residential portfolio of over €1 billion on behalf of APB, one of the world’s largest pension funds, further evidencing the firm’s depth of residential investment capability across Europe.
