UBS Asset Management's real estate & private markets multi-managers business (UBS REPM MM) has agreed to invest in a new fund, Matter UK Residential Income Fund (MUKRIF), established by Matter Real Estate.
Matter Real Estate is a real estate investment firm focused on the living sectors across Europe. The fund will be seeded by assets from Matter portfolio company Placefirst, which will also continue as a property manager.
With Matter as investment manager and Placefirst as property manager, UBS REPM MM will act as the anchor LP in the vehicle, with an initial commitment of £105 mln (€120 mln).
The fund’s initial transaction includes the acquisition of over 560, stabilised, single-family rental (SFR) homes located in five sites across five different UK towns, including Liverpool, Leeds and Sheffield. Future acquisitions of stabilised assets from Placefirst, as well as from other developers, are expected in the coming years, with the fund targeting core returns over the long-term.
Having identified a chronic structural undersupply of housing in the UK, Matter first invested in Placefirst in 2016, partnering with the management team to provide the funding and expertise required to achieve scale. Since then, Placefirst has expanded to complete 1,500 homes, with and a further 1,000 in various stages of development.
MUKRIF represents the second major direct institutional capital commitment received by Matter for its Placefirst platform in the past 18 months, demonstrating growing institutional investor interest in the sector.
David Christie, CEO at Matter Real Estate, commented: 'The commitment from UBS REPM MM is a testament to Matter’s extensive knowledge of the market and skill as managers in leading Placefirst through its initial development phase.
'We look forward to working closely with UBS REPM MM to capitalise on the strong momentum in UK SFR, and to delivering on Placefirst’s exceptional potential.'