PfP Capital have completed their first two developments within a pipeline of over 1,000 homes across Scotland for their Mid-Market Rent Fund. These sites deliver 109 new homes for mid-market rent in Paisley and Millerhill, offering a range of sizes across 1 to 4-bedroom properties.
A further 897 homes are currently under construction across 7 sites. Overall, this reflects a commitment of over £159 million to affordable housing nationwide. With this pipeline secure, PfP Capital have now surpassed their initial target of delivering 1,000 homes.
This announcement follows the news that the Scottish National Investment Bank has allocated £40 million to the initiative. This investment by this newly formed institution aligns with both their Place Mission, to build communities and promote equality, and their Net Zero Mission, to support Scotland’s transition to net zero. It takes the fund’s total commitments to over £180 million, exceeding the initial target of £160 million.
The fund is also backed by Strathclyde Pension Fund and Nationwide Pension fund, who have already committed £25 million and £60 million respectively. Following the latest investment, PfP Capital have increased their target fund size to £240 million.
In 2018, Rettie were appointed exclusive property advisors to the fund, to identify suitable opportunities for acquisition. Rettie continue to seek and review sites which meet the fund requirement, and are considering further opportunities to meet the new goal of up to 1,500 homes in total.
Matthew Benson, Rettie Director and head of Development Services, said: “We are delighted to have assisted in securing this pipeline, to attract funding from the Scottish National Investment Bank. This underpins the case for long-term investment in affordable housing. We view Build to Rent as a key component in addressing current housing challenges. We look forward to continuing our work with PfP Capital and growing their pipeline beyond the initial 1,000 home target”.
William Kyle, Fund Director at PfP Capital said: “Rettie have played a pivotal role in helping the fund reach this key milestone. Their research-led approach to assessing development opportunities and the market conditions for affordable homes has enabled the fund to acquire sites to meet its objectives.”