CBRE Investment Management (CBRE IM) has announced the launch of a new UK Single Family Housing strategy dedicated to the development and operation of single-family rental homes. Backed by an initial £400 million of available capital, the platform is built on core, long-term capital.

The strategy has been established to meet accelerating demand from both institutional investors and residents for professionally managed, high-quality, and attainable single-family housing across the UK. It targets the delivery of purpose-built homes at scale, directly responding to a chronic undersupply of quality rental accommodation.

Central to the initiative is an exclusive partnership with developer Moda, who will co-invest in the platform. The arrangement combines CBRE IM's residential investment platform with direct access to a substantial residential land bank of over 25,000 plots controlled by Moda's parent company, the Caddick Group. The strategy will also leverage CBRE IM and Moda's full operational capabilities to target enhanced return opportunities across both development projects and standing assets.

The platform holds a clear ambition to grow to £2 billion in value over time. Growth will be supported by this proprietary land pipeline alongside selective acquisitions from third-party housebuilders. CBRE IM notes that this multi-tiered sourcing capability provides flexibility throughout market cycles and offers investors access to opportunities not typically available via conventional market routes.

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The Single Family Housing strategy will benefit from both firms' established track records in delivering and operating residential communities.

Andrew Davey, Head of UK Residential Strategies at CBRE Investment Management, said: "Single family housing represents a compelling long term opportunity, supported by strong demand fundamentals and a chronic undersupply of high quality rental homes. This strategy is the result of significant engagement with our investment partners. It combines our institutional investment and asset management expertise with Moda Living's established development and operational platform to deliver high quality, professionally managed homes at scale. We believe our approach will deliver a truly differentiated approach for both our investors and residents."

Johnny Caddick, CEO of Moda Living, added: "This partnership marks an important step in scaling the delivery of institutional-grade single family housing across the UK. By investing alongside CBRE IM and aligning with patient, core capital, we can take a long-term approach to delivery, bringing forward a significant pipeline of well-designed homes at scale into an underserved market with proven fundamentals. This will allow us to maintain a focus on quality and consistency, creating places designed for long-term living while supporting stable, sustainable performance for investors."

The strategy builds on CBRE IM's long-standing residential investment capabilities. The firm possesses a 30-year track record of investing in residential real estate across Europe, with sector assets under management sitting at circa €13 billion. Its expertise spans affordable housing, multifamily, and single-family private rental housing.

The new strategy serves as a natural extension of CBRE IM's UK Affordable Housing proposition, which has delivered over 3,000 homes across the UK with a total net asset value of approximately £700 million. The firm currently manages two other dedicated residential strategies. Additionally, in the Netherlands, CBRE IM is building a residential portfolio exceeding €1 billion on behalf of ABP, one of the world's largest pension funds, further demonstrating the depth of its European residential investment capabilities.