Drawn by the United Kingdom's growing multifamily market, Los Angeles-based CBRE has announced it is acquiring London-based residential property developer Telford Homes in a $337M deal.

The deal is still subject to regulatory approvals and needs 75% of Telford shareholders to approve it, but the transaction has been recommended by the company's board of directors.

The deal is slated to close by the third quarter.

CBRE's move highlights Europe's growing multifamily markets.

Telford focuses on developing middle-market build-to-rent properties and has a development in-process portfolio of $1.6B.

CBRE officials in a news release said the growth of rental housing in those markets is being fueled by residents' changing attitudes about renting versus ownership, greater affordability relative to for-sale housing and limited supply.

CBRE's development business, Trammell Crow, will expand into the U.K. and European markets. Telford will operate under Trammell Crow, officials said.

“The UK is in the early stages of a secular shift toward institutionally owned urban rental housing, similar to what we have seen in the US over the last two decades," CBRE President and CEO Bob Sulentic said in a news release. "Telford is well positioned to lead this trend, and their more than 300 talented professionals operating in London are a great addition to our company.”

Telford CEO Jon Di-Stefano said being part of Trammell Crow will allow Telford to enhance its growth in the multifamily market in London.

“Our management team have found that Trammell Crow is aligned with both our culture and our current strategy and its platform will give Telford access to far greater resources, improved technology and wide-ranging expertise,” Di-Stefano said.