CBRE Investment Management has launched a UK single family housing strategy in partnership with Moda Living.
The platform is backed by £400m of seed capital and is aimed at developing and operating single family homes for rent across the country.
The strategy responds to demand from residents and investors for professionally managed, high-quality rental homes.
It will focus on purpose-built homes at scale to tackle the ongoing undersupply of quality rental housing in the UK.
Moda will co-invest alongside CBRE Investment Management, and the partnership includes access to a residential land bank of more than 25,000 plots controlled by Caddick Group.
The strategy also plans to use both standing assets and new developments, with ambitions to grow to £2bn in value over time.
CBRE Investment Management and Moda Living will use their operational platforms and track records in residential property to support delivery.
The strategy will also look to make selective acquisitions from third-party housebuilders, offering flexibility and access to opportunities not found through conventional approaches.
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.
“This strategy 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 at Moda Living, said: “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.”