Hermes Investment Management and Aberdeen Asset Management have invested in private-rented sector (PRS) assets in the UK.
Hermes, the investment manager owned by the BT Pension Scheme, and partner Countrywide are investing Β£23m (β¬28.9m) in a PRS scheme.
Vista, the companiesβ PRS JV , is forward funding the Manchester Waters scheme in Trafford.
The 164-unit scheme is being developed by Rowlinson Construction, which holds the site on a long-leasehold from Peel Land.
Chris Taylor, head of private markets at Hermes Investment Management, said Manchester was one of the UKβs strongest regional economies and had βparticularly robust professional and financial service industries helping to continue its growth trajectoryβ.
He added: βManchester Waters is therefore a long-term investment for Vista and falls in line with our strategy of focusing on high-quality, new BTR assets across the UK.β
The joint venture is aiming for an annual target investor-level return of 9-10%, net of fees.
The fund, which has a Β£200m pipeline, is aiming to invest Β£1bn over the next five years.
Aberdeen Asset Management, meanwhile, has bought The Hub, an 84-unit development in Harrow on the Hill.
Fund manager Ed Crockett said: βWe look for affordability, accessibility and amenity in our private-rented investments, and this development ticks all of the right boxes for us.
βThereβs enormous potential in the UKβs private-rented sector because of the significant historical under-supply of new homes being built.
βBut tenants expect, and deserve, professional landlords managing decent properties that are good value and in places where they want to live.β
Aberdeen is looking to commit Β£500m to UK PRS over the next five years.
