The Castle Street development will comprise 402 private rental apartments and 12 discounted market rent homes across three blocks, with residents benefitting from amenities including a rooftop lounge, co-working spaces, a gym and shared gardens.

HGP is providing £28m of equity funding for the JV; this will sit alongside JRL’s equity to deliver the project.

With the construction phase underway, JRL, the scheme’s developer and contractor, is targeting practical completion in December 2027.

Matthew Beech, investment director at JRL, commented: “Forming this partnership with HGP to bring forward our Castle Street development is a significant milestone for the scheme.

•   The Finance Professional Show 2024: The Video
•   Atelier provides £12.4m for 60-home office-to-resi conversion in Streatham
•   Watkin Jones receives planning approval for 322-bed PBSA in Bristol

“Castle Street will set a new benchmark for rental living in Luton, a town undergoing a once-in-a-generation regeneration, with investment transforming its economy, infrastructure and public realm.

“By delivering high-quality, professionally managed rental homes, JRL is proud to be helping to shape the future of Luton.”

Colin Bennett, investment director at HGP, added: “This first joint venture with JRL underlines our confidence in the resilience of the living sector at a time when economic and planning constraints are impacting housing starts.

“We are excited to bring the first BTR homes to Luton, made possible by the alignment of JRL’s delivery expertise with our flexible, long-term investment approach.

“This partnership will accelerate the scheme’s delivery, and we look forward to exploring further opportunities together in the future.”