Citra Living, which is a subsidiary of the Lloyds Group, has bought a newly completed residential building at Nene Wharf at Fletton Quays.
The cost of the deal has not been disclosed and it is thought that Citra has bought about 50 apartments from property developer, GRE Assets.
Apartments at Nene Wharf are currently marketed for sale at between £193,500 to a tad over £300,000.
The sale has been heralded as a vote of confidence in Peterborough as a property investment location.
It is thought to be the first time a leading bank has moved to acquire residential property to rent.
Michael El-Kassir, managing director of GRE Assets, said: “We are delighted to be working with Citra Living on this deal.
“To be the first acquisition for what is set to be an major residential landlord in the UK is extremely exciting.
“This is also a fantastic endorsement of our project and Peterborough for investment.
He said: “Our criteria for selecting an investment location is very strict and not something we are willing to compromise on.
“Affordability, good transport connections and a proactive regeneration programme are all essential.
“It’s also about timing – acquiring and developing sites when supply is struggling to meet demand.”
The £120 million Nene Wharf development is made up of 128 high quality apartments as well as a landscaped public realm and retail units.
Mr El-Kassir said: “Peterborough also has a lot to offer as an investment location including strong transport links, access to a young population, and large local employers.
“It also has unparalleled levels of regeneration, with £600 million of planned investment within walking distance of Nene Wharf alone.”
A Lloyds Bank spokesperson has previously said: “As we stated in our Full-Year results in February, we are committed to broadening access to home ownership and exploring opportunities to increase our support to the UK rental sector.”