PGIM Real Estate makes first UK acquisition for European core strategy
PGIM Real Estate has made its first acquisition in the UK on behalf of the investors in its European core strategy.
The residential property that has been acquired, known as “Centre Square”, consists of 123 multifamily rental units, situated on a central site in High Wycombe, Buckinghamshire.
The residential units consist of primarily one-bed and two-bed apartments, with over 110 parking spaces and three commercial units. The commercial units, currently under development, provide amenities for the tenants and operators such as a reception area and residents lounge and breakout/communal areas.
A commuter town, High Wycombe offers access to London in less than half an hour, while direct rail services also serve the key economic hubs of Oxford and Birmingham. The property, which is adjacent to the regionally dominant Eden Shopping Centre, is also just a 25-minute drive from Heathrow Airport and within a short walking distance to the public transport links.
While modest declines in UK residential rents are expected in 2020 amid the challenging economic environment, rents are expected to witness above-inflation growth in the ensuing years. In addition, the house-price-to-income ratio remains at an elevated level in High Wycombe, which is favourable for the private rental sector.
Charles Crowe, head of transactions, UK at PGIM Real Estate, says: “We are pleased to have made the first UK acquisition on behalf of our European core strategy. We believe the private rental and build-to-rent sectors in the UK offer compelling investment opportunities and will look to enhance our exposure to this market. We are confident this asset supports our aim to deliver long-term outperformance with low volatility through cashflow diversification.”