A business specialising in ‘multi-family’ developments – known as build to rent in the UK – has announced a fund of $1bn which it will spend in the US, China and the UK.

Atlas Residential claims this will be the first global multi-family apartment portfolio.

Most of the money – equivalent to around £810m – will be spend in the US (65%), with 20% in China and 15% in the UK.

The new investment vehicle will fund “several thousand” rental apartments, both to be acquired and built.

In the UK and China it will target ‘distressed’ build to rent properties.

In China, it says that developers are being forced to build rental apartments which they don’t know what to do with.

In the UK, it is focusing on projects in Middlesex, Sussex, Kent and Lancashire, while also looking to acquire existing properties.

Atlas UK managing director Kelvin Sutherland said: “From what we are seeing in the market, inexperienced UK multi-family operators will need to dispose of under-performing assets as they struggle to cope with a tightening market and in some cases sub-market over-supply.”

Atlas is headquartered in Chicago with offices in Dallas and London.

In the UK it currently has three sites with about 1,000 units operating or under construction with a further 1,500 in the pipeline.