The BTR funding vehicle is focused on commuter locations across a pipeline of sites in the region.
This venture includes an initial seed portfolio of more than 1,000 purpose-built residential rental units with a GDV of circa £480m.
GVA has been appointed to raise capital for the funding vehicle, which will draw from the strategic development joint ventures in London and the south-east of England.
MSIL – along with its sister companies Lovell and MUSE – is targeting the delivery of more than 20,000 homes over the next decade.
Richard Stonehouse, senior director and head of residential investment at GVA, said: “With the UK continuing to be an incredibly attractive destination to invest in this rapidly emerging asset class, there remains a huge supply and demand imbalance, particularly in south-east England, where affordability is most constrained.
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“The investment strategy is not only focused on the squeezed mid-market, where occupier demand is highest, but it covers core commuter-belt locations, which are also set to benefit from the broader regeneration and infrastructure investment premium which MSIL is delivering through long-term joint ventures.
“Unlike most other BTR funding vehicles, which have different entry points, MSIL offers a vertically integrated development and investment management capability.
“As such, we anticipate a high level of interest from a broad range of parties.”
Rebecca Lewis, investment manager at MSIL, added: “The UK investment market in build-to-rent rarely sees opportunities of this scale and quality.
“MSIL’s credentials across public/private partnerships, design, construction and investment management provides the ability to deploy large volumes of strategic capital against institutional grade, new-build rental stock across multiple prime town centre locations with excellent transport links into central London.
“We are targeting the mid-market with clusters of 200+ units with appropriate levels of associated amenity.”