It is hoped that the fund will help deliver 3,000 new homes.
PfP Capital said the fund will be seeded with three major residential development schemes across the UK, valued at £150m, which will be forward-funded through a special purpose vehicle, prior to introducing long-term capital through the fund.
Places for People became the first housing association to establish a distinct fund management capability with the launch PfP Capital last year.
Alex Notay, a director of product and service innovation at Places for People, will move across to manage the new fund.
Ms Notay said: “This is an exciting time for the sector and the new fund will give investors an unparalleled opportunity to invest with one of the most experienced teams and a manager with a socially conscious DNA.
“Institutions recognise that the UK build-to-rent sector has potential to deliver significant, stable returns over the long term but also that social impact is now a genuine priority for investors. PfP Capital is uniquely qualified to capitalise on that opportunity by leveraging the group’s breadth of experience to deliver 3,000 quality homes in professionally managed build-to-rent communities.”
Chris Jones, managing director of PfP Capital, added: “We remain committed to exploring new and innovative ways to deliver investment opportunities within UK real estate that match the varying risk/return profiles of institutional investors.
“We see huge opportunity in being able to offer differentiated products through our PRS and BTR strategies that will offer residents greater quality and choice.
“There is growing interest in the variety of UK housing tenures as an investment asset class and we will continue to develop our business to provide solutions to this demand rooted in Places for People’s socially driven objectives.”