Member Article

Places for People launches fund management business

Property management company Places for People Group has launched new fund management business PfP Capital and announced plans for its first fund targeted at the UK private rented sector.

This is the first time an organisation, which originally started as a housing association, has established a distinct fund management capability.

The new fund will acquire 1,379 residential units from Places for People, valued at around £150m.

Chris Jones, Managing Director, PfP Capital, said: “Places for People has been investing in PRS for over 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.”

Tim Saunders, Fund Director, PfP Capital, said: “The new fund presents institutional investors with an opportunity to partner with a socially-conscious fund manager. We can offer an attractive income yield from day one.

“We will embark on proactive asset management of the properties within the fund’s portfolio and there is an opportunity to enhance returns through reinvestment by disposing of select broken blocks.

“There is significant potential for future growth and we will be seeking acquisition opportunities to grow the fund’s portfolio to around 2,500 units through offtake from Places for People’s c.15,000 unit development pipeline and opportunistic acquisitions from housebuilders and developers.”