It plans to establish an initial seed portfolio of more than 1000 purpose-built residential rental units with a development value of £480m.

The funding vehicle would deliver a series of 200-plus home projects focused on prime commuter locations around London and the South East of England

Property consultant GVA has been appointed by Morgan Sindall Investments to raise capital for the funding vehicle, which will draw from the strategic development joint ventures in London and the South East of England.

MSIL along with its sister companies Lovell and MUSE is targeting the delivery of more than 20,000 homes over the next decade.

Richard Stonehouse, Senior Director and Head of Residential Investment at GVA, said: “With the UK continuing to be an incredibly attractive destination to invest in this rapidly emerging asset class, there remains a huge supply and demand imbalance particularly in South East England where affordability is most constrained.

“The investment strategy is not only focused on the squeezed mid-market where occupier demand is highest but it covers core commuter belt locations which are also set to benefit from the broader regeneration and infrastructure investment premium which MSIL is delivering through long-term joint ventures.

“Unlike most other BTR funding vehicles, which have different entry points, MSIL offers a vertically integrated development and investment management capability. As such, we anticipate a high level of interest from a broad range of parties.”

Rebecca Lewis, Investment Manager at MSIL, said: “The UK investment market in build-to-rent rarely sees opportunities of this scale and quality.

“MSIL’s credentials across public/private partnerships, design, construction and investment management provides the ability to deploy large volumes of strategic capital against institutional grade new build rental stock across multiple prime town centre locations with excellent transport links into central London.

“We are targeting the mid-market with clusters of 200+ units with appropriate levels of associated amenity.”