Key Takeaways
- • CBRE Investment Management launches UK Single Family Housing strategy with £400 million initial capital commitment, targeting growth to £2 billion in asset value over time.
- • Exclusive partnership with Moda Living provides access to over 25,000 residential plots controlled by parent company Caddick Group, creating proprietary sourcing advantage unavailable through conventional market channels.
- • Strategy aims to deliver approximately 1,500 homes initially, addressing chronic undersupply of quality rental housing across the UK through purpose-built, professionally managed single-family residences.
- • Combined operational platform leverages CBRE IM's residential investment expertise with Moda's development and operational capabilities, enabling enhanced returns across standing assets and development opportunities.
- • Multi-tiered sourcing model combines proprietary land pipeline with selective third-party acquisitions, providing capital flexibility and cycle resilience for institutional investors.
Summary
CBRE Investment Management has announced the launch of a UK Single Family Housing strategy in partnership with Moda Living, backed by an initial £400 million of available capital. The open-ended fund targets the delivery of approximately 1,500 purpose-built homes and aspires to grow the platform to £2 billion in value over time. The strategy addresses growing institutional investor demand for professionally managed, high-quality rental housing while responding to the chronic undersupply of quality rental homes across the UK market.
The partnership structure positions Moda Living as co-investor alongside CBRE IM, creating a combined platform that merges CBRE Investment Management's significant residential investment and asset management capabilities with Moda's development expertise and operational track record. Critically, the partnership provides exclusive access to over 25,000 residential plots controlled by Moda's parent company, Caddick Group—a proprietary land bank that delivers sourcing flexibility unavailable through conventional market acquisition approaches.
The strategy's multi-tiered capital deployment model combines three sourcing channels: the proprietary land pipeline from Caddick Group, development and construction through Moda Living, and selective acquisitions from third-party housebuilders. This layered approach provides investors with cycle-resilient capital deployment options and access to opportunities that typically remain outside conventional institutional real estate markets. Both partners bring established track records in delivering and operating residential communities at scale, positioning the fund to generate enhanced returns across both development and operational phases.
The fund's long-term capital structure and institutional backing reflect growing recognition of single-family rental housing as a core institutional asset class in the UK. The strategy's focus on attainable housing—delivering quality, purpose-built homes at scale—aligns with both housing supply objectives and investor demand for yield-generative real assets with stable, inflation-protected cash flows.
The partnership structure positions Moda Living as co-investor alongside CBRE IM, creating a combined platform that merges CBRE Investment Management's significant residential investment and asset management capabilities with Moda's development expertise and operational track record. Critically, the partnership provides exclusive access to over 25,000 residential plots controlled by Moda's parent company, Caddick Group—a proprietary land bank that delivers sourcing flexibility unavailable through conventional market acquisition approaches.
The strategy's multi-tiered capital deployment model combines three sourcing channels: the proprietary land pipeline from Caddick Group, development and construction through Moda Living, and selective acquisitions from third-party housebuilders. This layered approach provides investors with cycle-resilient capital deployment options and access to opportunities that typically remain outside conventional institutional real estate markets. Both partners bring established track records in delivering and operating residential communities at scale, positioning the fund to generate enhanced returns across both development and operational phases.
The fund's long-term capital structure and institutional backing reflect growing recognition of single-family rental housing as a core institutional asset class in the UK. The strategy's focus on attainable housing—delivering quality, purpose-built homes at scale—aligns with both housing supply objectives and investor demand for yield-generative real assets with stable, inflation-protected cash flows.
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