CBRE Investment Management has announced the launch of a new residential fund, in partnership with Moda Living, which will focus on the development of single family housing.
The CBRE UK Single Family Housing Partners fund has been backed by an initial £400million of capital, and the platform will be built on core, long-term capital. CBRE says that the fund has been established to address growing demand from residents and institutional investors for professionally managed, high-quality, attainable single family housing across the UK, and targets the delivery of purpose-built homes at scale.
Central to the strategy is an exclusive partnership with Moda, which will co-invest in the platform. The partnership combines CBRE IM’s residential platform with access to a substantial residential land bank of over 25,000 plots controlled by Moda’s parent company, Caddick Group. This is alongside the ability to leverage CBRE IM and Moda’s full operational platform to target enhanced return opportunities across both standing assets and development.
The strategy has an ambition to grow to £2billion in value over time, supported by both its land pipeline and selective acquisitions from third-party housebuilders.
Andrew Davey, head of UK residential strategies at CBRE Investment Management, said: “Single family housing represents a compelling long‑term opportunity, supported by strong demand fundamentals and a chronic undersupply of high‑quality rental homes.”
“CBRE UK Single Family Housing Partners is the result of significant engagement with our investment partners. It combines our institutional investment and asset management expertise with Moda Living’s established development and operational platform to deliver high‑quality, professionally managed homes at scale. We believe our approach will deliver a truly differentiated approach for both our investors and residents.”
Johnny Caddick, CEO of Moda Living, commented: “This partnership marks an important step in scaling the delivery of institutional-grade single family housing across the UK. By investing alongside CBRE IM and aligning with patient, core capital, we can take a long-term approach to delivery, bringing forward a significant pipeline of well-designed homes at scale into an underserved market with proven fundamentals. This will allow us to maintain a focus on quality and consistency, creating places designed for long-term living while supporting stable, sustainable performance for investors.”
CBRE IM says that the new strategy is a natural extension of its successful affordable housing proposition, which has delivered over 3,000 homes across the UK with a total net asset value of approximately £700million.
