(Bloomberg) -- Blackstone Inc. and Regis Group Plc have agreed a deal to buy a portfolio of 1,750 homes from UK homebuilder Vistry Group Plc.

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Funds managed by the private equity firm and its joint venture partner Regis will acquire the properties, which are mostly concentrated in the south east of England, in a deal valued at £580 million ($742 million), according to a statement Tuesday. Vistry is in the process of selling off properties from its housebuilding unit as the company pivots towards focusing on its partnerships business, which builds affordable housing for mostly government and non-profit partners.

Blackstone has bet heavily on residential property this year as the private equity firm anticipates a supply shortage and seeks to invest in real estate with shorter leases that allow it to capture rising rents more quickly. The firm completed the largest UK residential deal of 2023 when it acquired 2,800 homes for £800 million in November. It has also recently taken US landlords Air Communities and Tricon Residential private.

“Institutional private capital can play an important role in providing high quality housing stock across the UK, particularly in the private rented sector which is significantly undersupplied today,” Blackstone head of European real estate James Seppala said in the statement.

The portfolio would be managed by Leaf Living, a provider of private rented sector housing, according to the statement.

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