CBRE and Moda Living launch fund targeting single family homes

CBRE’s investment management business has launched a new fund focused on the development of single family housing.

Backed by an initial £400m investment and launched in partnership with Moda Living, CBRE UK Single Family Housing Partners claims to be the UK’s first fund dedicated to the single family housing sector.

The fund has been established to address growing demand from residents and institutional investors for professionally-managed single family rental homes in the UK. 

Moda, a Harrogate-based build-to-rent firm, will co-invest in the platform, which will have access to the 25,000-plot land bank owned by Moda’s parent company, Caddick Group. 

The partnership aims to grow to £2bn in value over time, supported by the proprietary land pipeline and selective acquisitions from other builders.

“This multi-tiered sourcing capability provides flexibility throughout cycles and will give investors the ability to access opportunities not typically available via a conventional market approach,” it said.

“This partnership marks an important step in scaling the delivery of institutional-grade single family housing across the UK,” said Johnny Caddick, CEO of Moda Living. 

“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 Investment Management has delivered more than 3,000 homes across the UK and has assets under management of around EUR13bn across the UK and Europe.