KCR Residential REIT has joined forces with housebuilder Inland Homes to invest in the private rented sector (PRS) with a focus on the South and South-East of England.
As part of the agreement, Inland and KCR have identified an initial pipeline valued in excess of £100 mln (€114 mln) from within Inland's current portfolio, comprising investment properties, units under construction and land with planning consent.
KCR will have the right of first refusal over the initial identified pipeline of Inland assets while Inland will have first right of refusal to undertake any construction contract associated with the acquired assets.
Dominic White, chief executive of KCR, said: 'Our strategic relationship with Inland creates a synergy that will allow both parties to accelerate their respective commercial prospects and deliver greater shareholder value.'
He added: 'At the same time, we will be able to use Inland's construction capabilities in relation to new-build and refurbishment projects across KCR's current and future assets. We look forward to progressing the relationship and having Inland as one of our cornerstone investors.'
Stephen Wicks, chief executive of Inland Homes, added: 'This potential investment will provide us with exposure to the fast-growing PRS sector at an attractive entry point, alongside a dynamic and ambitious management team. It offers the potential for Inland shareholders to be beneficiaries of the synergies that this agreement would create, and alongside our established regeneration expertise and rapidly expanding residential development activities, sees the business further broaden its UK residential sector exposure.'