USS and PfP create £330m JV to target U.K. PRS

The £60 billion Universities Superannuation Scheme (USS) has entered into a £330 million ($444 million) joint venture with Places for People (PfP) to acquire a range of private rented residential assets.

Under the deal, USS will provide the core funding for the whole of the original investment target, while PfP Capital will act as asset manager and hold a 10 percent stake in the joint venture.

Touchstone, Places for People’s property management business, will manage the portfolio on a day-to-day basis.

Initially, a £150 million ($202 million) seed portfolio of residential assets will be purchased from Places for People, with an additional £10 million ($13 million) of similar assets possible following completion. These assets include modern, mid-market properties, with high occupancy rates and spread geographically across the United Kingdom.

The remaining commitments will be used for the acquisition of further PRS assets across the United Kingdom.