Press releases

Hub and Bridges agree £100m deal with Legal & General to kick-start Taberner house development

Residential developer HUB and specialist investor Bridges Fund Management have agreed a £100m deal with Legal & General to develop a 251-unit build to rent tower at the heart of the Taberner House development in Croydon, south London.

17 May 2018


Press release (PDF 88KB)

The forward funding deal will see Legal & General take ownership of the 35-storey building. Designed by Stirling Prize-winning architect AHMM, the building comprises a mix of one-, two- and three-bedroom apartments, with rooftop amenity space, communal facilities on the ground and first floors and a ground floor commercial unit.

The tower is the tallest of the four blocks that comprise the Taberner House development, which also includes 21-, 19- and 13-storey buildings. The development will provide 513 homes, with a mix of affordable, for sale and rental units, as well as new public realm, a children’s play space and a new café. At least 40% of the units will be designated as affordable.

As part of the development, The Queen’s Gardens, which are adjacent to the site, will be enlarged and revitalised, with new landscaping and amenities. HUB and internationally renowned landscape architect Grant Associates are working closely with local people, in a large collaborative design process, coordinated by consultant Kaizen, to understand their ideas and priorities to make sure these are reflected in the final design of the park.

The deal with Legal & General comes as construction work commenced on the scheme this week, after Henry Construction was appointed as main contractor.

Dan Batterton, BTR Fund Manager at Legal & General said: "Our funding deal will act as a catalyst for further housing development in Croydon and will help support the wider regeneration of the area. Bringing together the development expertise of HUB, the progressive long term vision of Croydon Council and our private capital we are able to unlock the development of much needed housing supply, delivering real UK growth and helping to transform Croydon over the long term."
Steve Sanham, HUB Managing Director, said: "Taberner House is a hugely important development for Croydon and after an extensive process of engagement with the community and other stakeholders we are very excited that work on the scheme is now underway. The deal with Legal & General is a massive vote of confidence not only in the quality of the scheme that we are bringing forward, but in Croydon itself – a vibrant, innovative and dynamic town with a proud history and a strong identity."
Simon Ringer, Head of Property Funds at Bridges, said: "There’s a pressing need for more affordable and lower-cost housing in London. We believe our Taberner House development in Croydon, which is informed by the needs of the local community and draws on the latest sustainable design and construction techniques, is going to be a great example of what can be achieved. Moreover, this deal highlights that there’s a strong appetite among institutional investors for high-quality assets like this that are creating long-term value for their local area."

Legal & General’s award-winning BTR platform now has a pipeline of almost 2,000 homes, with the aim to have 6,000 in planning, development or operation by the end of 2019. Legal & General has raised pension fund capital for an open-ended BTR fund alongside a £600m joint venture between Legal & General Capital and PGGM, meaning it has significant investment firepower.

HUB and Bridges are jointly developing a number of lower-cost housing developments across Greater London, in line with Bridges’ focus on investing in needs-driven sectors and emerging locations. Altogether the separate projects could deliver over 1,500 homes with a combined value of over £500m.

The Taberner House site is located in central Croydon, opposite the Croydon Council offices and near to Croydon Town Hall. A key regeneration site, the scheme will provide space for retail, leisure and cultural activities, as well as bringing much-needed new homes and jobs to the area.

In order to complement and enhance the existing townscape, the positioning of the residential blocks has been carefully considered in the context of the site, whilst also maximising and enhancing the area and quality of the landscaped public realm space.

Completion of the Taberner House development is expected in 2021.

Savills advised HUB on the forward funding deal with Legal & General.

Further information

Faye_Walters_100x130.png

Faye Bennett

PR Manager

Legal & General Capital

Notes to editors

Legal & General Investment Management Real Assets (LGIMRA) is a division of Legal & General Investment Management (LGIM), one of Europe’s largest institutional asset managers and a major global investor. LGIM manages £1.28tn in assets (as at 31 December 2020), working with a range of global clients, including pension schemes, sovereign wealth funds, fund distributors and retail investors.

LGIM Real Assets has assets under management of £36.3bn (as at 31 December 2020) and is one of the largest private markets investment managers in the UK. Investing in both debt and equity and across the risk/return spectrum, LGIM Real Assets actively invests in and manages assets across commercial, operational and residential property sectors, as well as infrastructure, real estate, corporate and alternative debt.

Taking a long term view in order to future proof our investments, LGIM Real Assets continues to lead the industry in ESG performance, considering all environmental, social and governance issues at asset level as well as portfolio level. In 2021, we are implementing a strategy as part of our commitment to net zero carbon emissions across the real estate equity business by 2050, and have also committed to measuring social value across 20% of our platform by the end of the year.

(As of June 2021)

IMPORTANT INFORMATION

The value of an investment and any income taken from it is not guaranteed and can go down as well as up, you may not get back the amount you originally invested. Past performance is no guarantee of future results. You should consult an independent investment adviser prior to making any investment in order to determine its suitability to your circumstances.

Legal & General Capital (LGC) is Legal & General Group’s alternative asset platform, creating assets for Legal & General Retirement and third-party clients in order to achieve improved risk-adjusted returns for our shareholders.  LGC has built its capabilities in a range of alternative sectors, including in residential property; specialist commercial real estate; clean energy; alternative credit; and venture capital, which are all supported by long-term structural growth drivers, meet a financing gap and respond to a scarcity of supply that is underpinned by enduring societal needs.

Its purpose is to invest society’s capital for society’s benefit. Investing in the real economy and supporting the Group’s focus on climate and inclusive capitalism, LGC’s investments create jobs, change lives and contribute towards a net zero carbon future.

Legal & General has invested over £29bn in levelling-up regional economies, including through major UK-wide regeneration schemes and has recently made a commitment to enable all its new homes to operate at net zero carbon emissions from 2030.

(As of June 2021)

Established in 1836, Legal & General is one of the UK’s leading financial services groups and a major global investor, with international businesses in the US, Europe, Middle East and Asia. With almost £1.3 trillion in total assets under management*, we are the UK’s largest investment manager for corporate pension schemes and a UK market leader in pension risk transfer, alternative asset origination, life insurance, workplace pensions and retirement income. Through inclusive capitalism, we aim to build a better society by investing in long-term assets that benefit everyone.

* at 30 June 2021