M&G Real Estate is funding a second phase of development by Crest Nicholson at Arborfield Green – a new garden village of 2,000 homes in Berkshire, near Wokingham and Reading.
This will be the fifth private rented sector (PRS) project for the partnership, including the first phase at Arborfield Green, and marks more than £115m of deals made under the investor/house-builder arrangement that was established in 2015.
The latest phase at Arborfield Green is for 104 PRS homes, to be ready for occupation in 2020. It will bring to 218 the number of M&G-owned homes on the development.
Crest Nicholson interim chief executive Chris Tinker said: “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.
“As house-builders 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.”
Alex Greaves, head of residential investment at M&G Real Estate, added: “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. 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.”
Previous deals with Crest Nicholson include M&G’s £51.5m purchase of 227 PRS units at Crest Nicholson’s Kilnwood Vale development, near Crawley in West Sussex. This development is billed as the UK’s first low-rise suburban apartment development, centred on communal spaces, including a club house, tennis court and games area. Completed and fully let in 2018, it is based on a similar model to Arborfield Green.