Partnership aims to build 5,000 single family BTR homes by end of 2025
Moda Living has entered into a joint venture with global fund manager Ares to deliver 5,000 build-to-rent single family homes by the end of 2025.
The partnership is targeting delivery of schemes with a combined gross development value of more than £1 billion over the same period. It will directly deliver homes with Caddick Construction and through partnerships with local developers.
The sites for around 1,000 homes have been secured, with work on projects due to start in the new year.
The deal comes just a month after Apache, Moda’s longstanding development partner for its pipeline of build to rent apartments announced its own suburban build to rent joint venture not involving Moda.
Moda said the homes it will develop, which will range from one to four bedrooms, will be rented on long-term renewable leases without upfront fees or deposits. Moda says this will “provide true security of tenure.”
Johnny Caddick, chief executive at Moda, said: “The single family housing proposition focuses on great lifestyle with great service. We believe this offers people more than bricks and mortar and genuine pride of place for the long-term.”
Ares Management Corporation is an alternative investment manager with around £210 billion of assets under management.
“We believe that there is a significant undersupply of price accessible rental options in the UK, and more broadly across Europe, so this partnership represents yet another example of how we are executing on our strategy to bring forward high-quality rental housing options in key markets,” said William Westbrook, managing director in the Ares Real Estate Group.
Moda last week announced a partnership with global property developer and investor Osborne & Co to deliver build-to-rent (BTR) homes alongside commercial space for the life sciences. It also announced it has set up a co-living arm to deliver 1,000 homes a year.