In a significant move to address the UK’s housing needs, Goldman Sachs Merchant Banking Division has entered into a strategic partnership with renowned developer Countryside. The newly inked framework agreement aims to fund the construction of approximately 1,000 Build to Rent homes over the forthcoming three years.

Iain McPherson, Group Chief Executive of Countryside, emphasized the pressing need for quality rental accommodations in the UK. “This collaboration is a testament to our commitment to delivering more family homes in line with the rising demand. The enthusiasm from both new and existing partners to contribute to PRS homes in sustainable mixed-tenure communities across the UK is truly encouraging,” McPherson stated.

The initial phase of the agreement will focus on three prime locations: West Bromwich, Wolverhampton, and Bicester. These sites are projected to yield 410 family Build to Rent homes within a three-year span. Both Goldman Sachs and Countryside are actively exploring a broader spectrum of Build to Rent opportunities.

This partnership underscores Goldman Sachs’ growing interest in the UK housing market. The investment giant has recently channeled funds into iQ Student Accommodation and allocated £75m to modular developer TopHat. Chris Semones, Managing Director at Goldman Sachs, expressed his enthusiasm about the collaboration, stating, “We are eager to join forces with Countryside, leveraging their expertise to invest substantially in top-tier new homes in the UK.”

This venture marks Countryside’s second significant agreement in recent times. The developer’s prior agreement involved the acquisition of five sites when Sigma Capital and EQT Real Estate formed a joint venture, aiming to produce 361 Build to Rent homes with a gross development cost of £102m.