M3 to invest £250m in London resi venture

The real estate investment management and advisory firm is reportedly set to make an investment in a company run by UK developer Essential Land which will develop residential property in central London.

M3 Capital Partners, the real estate investment management and advisory firm, is reportedly poised to inject £250 million (€314.4 million; $294.7 million) into a joint venture aimed at developing more than 3,500 homes in London over the next decade.

According to a report by UK property magazine, Property Week, M3’s 2005-launched Evergreen Real Estate Partners, a $2.9 billion value-added fund through which the firm makes investments in real estate operating partnerships, will invest in Essential Living, a company managed by UK residential property company Essential Land.

Essential Living, which was originally launched in 2010, will target residential developments in central London with a view to cashing in on a perceived undersupply of rental accommodation. The company will buy development sites and work through planning consents as well as undertake the development and ultimately manage the properties too.

Essential Land has a background of working alongside private equity groups, counting firms including London-based Delancey and global alternative investors Carval Investors among its partners.

The investment is the latest in a line of outlays made by M3’s Evergreen fund in the UK. To date, of the $2 billion of the fund’s equity that has been invested, $350 million was invested in Urbanest, a UK and Australia student housing developer and operator, and $200 million was invested in a developer and operator of motorway service areas called Extra MSA.