Telford partners with Invesco and M&G to fund pipeline

London-focused residential property developer Telford Homes has inked long-term partnerships with Invesco Real Estate and M&G Real Estate to forward-fund the firm's strategic build-to-rent pipeline.

M&G will be the group’s priority partner for schemes including up to 200 build to rent homes, while Invesco will have priority for more than 200, according to Telford. In capital value terms, 200 homes is likely to represent between £75 mln (€87 mln) and £100 mln. Both partners can step into schemes should the other decide not to take an opportunity further.

'Rental demand is increasing in London but the supply of new homes is still constrained,' said Jon Di-Stefano, CEO of Telford Homes. 'Compelling market fundamentals and the opportunity to de-risk our future pipeline with reduced capital investment give us confidence that these partnerships will help accelerate our aim to deliver a significant increase in our output of build to rent homes across London.'

Both Invesco and M&G have signed partnership agreements with Telford Homes for an initial three year period but with an expectation from all parties that the relationships will continue beyond the initial term, Telford said.

Alex Greaves, head of residential investment at M&G Real Estate, added: 'We are delighted to formally cement what has been an excellent working relationship with Telford over the last three years. Commercialising the production of homes to rent at scale with a likeminded, high quality developer of rental stock, is another step closer to fulfilling M&G’s residential investment strategy.'

John German, managing director of residential investments at Invesco Real Estate, said: 'Our global institutional investors continue to believe in the fundamentals of the UK build to rent market and we still see an increasing appetite for the sector both in London and the wider UK market as it provides a key investment opportunity for a diversified investment portfolio.'

Advisory firm Savills managed the selection process.


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