Grainger Trust, the UK’s largest quoted residential property investor, today announced that it had completed the first closing of its market-rented residential fund, G:res1.

Four institutional investors have signed up to the fund, committing £56m of equity.

Together with £125m of non-recourse debt from Barclays Capital, the equity invested by Swiss Re, Storebrand Eiendom, Achmea Vastgoed and Norsk Hydros Pensjonskasse will be used to grow and manage the fund’s 1,400-strong market-rented residential property portfolio.

The execution of the first closing of G:res1 brings Grainger a step closer to realising its ambitions to become a co-investing fund manager.

Grainger chief executive Rupert Dickinson said: ‘The positive response from leading European institutional investors is a strong endorsement of Grainger and the UK residential sector.’

Macquarie Capital Partners is advising Grainger on the structure and placing of shares in the fund, which is due to have a second closing in the first quarter of next year.

Grainger intends to keep a 20% stake in the fund.