An investment management group has raised £115 million of equity from a number of UK pension funds to invest in the UK Private Rented Sector (PRS).

Aberdeen Asset Management said the ‘Investment Club’ will acquire existing or new developments of residential blocks across the UK.

Michael Dinsdale from Aberdeen Asset Management, who led the capital raising, said: “This Club reflects the growing interest in the PRS sector. We have designed the Club after extensive discussions with investors to meet their needs for a clear strategy, a simple structure, and a cost effective approach.”

The portfolio will be run by Ed Crockett who leads Aberdeen’s UK Residential Team.

He said: “Aberdeen already manages over £350m of residential property assets in the UK. We see this as an area of real interest for investors offering a stable, durable income stream with strong demographic pressure driving a fundamental change in the approach to the sector. We are delighted to be able to assist these clients in growing their exposure to this asset class.”