Countrywide eyes $1.7 bln rental homes fund as profits jump

LONDON, Feb 27 (Reuters) - British estate agency Countrywide (LSE: CWD.L - news)

said it was on the hunt for a partner to help it build a

1 billion pound ($1.7 billion) fund to invest in rental

property, as it posted its first profit since returning to the

stock market.

Britain's largest estate agency by revenue said on Thursday

it had committed 20 million pounds of its own capital to buy a

portfolio of rental properties.

It is now looking for an institution or fund manager partner

to help it build a fund with a target size of 1 billion pounds

invested over the next five years.

"We believe Countrywide is uniquely placed to play a major

role in the growth of this developing sector," it said.

Institutional investor interest in the private rental sector

has picked up as Britain, traditionally a nation of homeowners,

has seen record numbers of households move into the rental

sector in recent years due to a shortage of homes.

In November, Gatehouse Bank formed a joint venture with

property developer Sigma Capital to build thousands of

rental homes in Britain.

Countrywide, which enjoyed a strong return to the market in

March after a six year absence, operates from about 1,300

offices under 46 brands including Hamptons International and

Bairstow Eves across Britain.

Total (NYSE: TOT - news) income for the year to end-December rose 11 percent to

584.8 million pounds ($973 million), while adjusted earnings

before interest, tax, debt and amortisation increased by 37

percent to 86.6 million pounds.

It also said its chief executive of seven years, Grenville

Turner, would step down this year to become its non-executive

chairman. Investors usually frown upon such moves due to

concerns over possible conflicts between the new and old chief

executives.

Turner, who owns less than 2 percent of Countrywide's

shares, said the decision had been made after consulting with

shareholders.

Countrywide's results come as housebuilders such as Barratt

Developments and Redrow (LSE: RDW.L - news) announced increased

dividend payouts to shareholders as Britain's housing market

recovers.