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PfP launches fund management arm with £150m acquisition
A housing association has launched a new fund management business with an acquisition of 1,379 units valued at £150m.
Places for People (PfP) today announced the launch of PfP Capital, which will acquire the units from the housing association – promising to deliver an immediate gross yield of 7% to investors.
Inside Housing exclusively revealed the association had registered with the Financial Conduct Authority and planned to set up as a fund manager last year.
The first 1,379 homes are private rented sector (PRS) units that generate an estimated net rent per annum of circa £7.7m.
It plans to invest a further £150m in acquiring other similar properties in the short to medium term.
Places for People will retain a “substantial investment” in the fund and intends to recycle the secondary capital raised back into the group’s business activities to accelerate its contribution both to the delivery of new homes and other social impact projects.
Chris Jones, managing director of PfP Capital, said: “Places for People has been investing in PRS for more than 20 years and we have an impressive track record of property asset management that delivers low void rates, rental growth and value creation.
“Launching a fund management business is an elegant solution to the challenge of growth for housing associations and positions Places for People to acquire and develop new assets to support our future commercial and socially driven objectives.”
