Private property
The news that A2Dominion and Great Places Housing Group are bidding to be the first to make the dream of institutional funds being used to build private rented sector housing is to be applauded.
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The first £100 to £200 million fund has yet to be formally marketed to investors, yet they and their adviser Savills seem confident that the returns of 5 per cent on offer will prove attractive. This is significant as, until now, other more established property hands were sceptical of the appetite for investors to part with their cash with the relatively modest level of returns on offer.
A crucial difference with the proposed plan may be the fact that they are not pitching as an alternative to commercial property where returns are higher, but at investors in other asset classes such as renewable energy.
As is clear from our league table of the top 50 developers, which kicks off our construction and development special, the quicker any extra homes from PRS ventures can come on stream the better.