Legal & General has today announced that it has bought a Build To Rent (BTR) site in the centre of Leeds, marking the fifth UK city to which it will bring its new rental offer.
11 May 2017
This latest investment brings L&G’s total pipeline of BTR units to over 1,400 with an expected gross development value across the portfolio of £420m.
The Leeds site, Mustard Wharf, has been acquired from U+I in partnership with CTP, and has permission for 250 homes as well as 8,640 sq ft of commercial and amenity space. Just a five minute walk from Leeds Train Station, the central site is situated in Granary Wharf, an established retail, leisure and residential location. It also benefits from being strategically important to the wider regeneration area of South Bank. L&G expects to be able to begin construction on the £60m scheme in early 2018, with practical completion aimed for early 2020.
L&G’s total investment capability for the Build to Rent (BTR) sector currently stands at circa £1 billion, having raised capital from major pension funds for an open-ended Build to Rent (BTR) fund, as well as a £600 million JV investment by Legal & General Capital and PGGM. Its existing sites in Bristol, Bath and Walthamstow are progressing well and its first scheme in Salford is due to welcome its first residents at the start of June.
L&G is involved in housing creation across the spectrum, backing a fast growing pipeline of over 70,000 new homes over the next five to ten years and looking to help provide the UK’s population with high quality, affordable living at all stages in their life cycle. Forming an important part of this, its Build to Rent fund is creating bespoke, quality rental stock that offers a positive choice for elective renters through high service levels and flexible lease structures. Focused on key urban regeneration areas centred around transport hubs, it is targeting schemes of over 150 units, taking advantage of economies of scale to deliver better value and more choice for its residents, whilst building sustainable, vibrant communities.
Dan Batterton, BTR Fund Manager at LGIM Real Assets, said: “In our view Mustard Wharf is the ideal location for a BTR scheme in Leeds. It is close to major transport links and local amenities, and complements the wider regeneration of the local area, supporting job growth and the local economy over the long term. We are excited that we are going to create a new standard of rental accommodation and service in a thriving community.”
Mathieu Elshout, Senior Director Private Real Estate at PGGM, commented: “PGGM Private Real Estate builds strategic partnerships all over the world. This acquisition demonstrates the success of our partnership with L&G, having already secured five UK City regeneration schemes for our joint venture since its start last year. This enables us to make a positive difference to the built environment. Shaping the project from the outset, the L&G asset management team are able to create from scratch, good quality residential accommodation that suits renters’ needs and offers a new, professional level of customer service, while also addressing the UK’s housing shortage. As a responsible investor of Dutch pension capital we choose to back projects that contribute to a sustainable world.”
James Lidgate, Director of Housing at Legal & General Capital, said: “This latest acquisition supports our vision of investing in long term sustainable urban schemes that support wider urban regeneration to transform and reshape Britain’s landscape, bringing jobs and housing back into the centre of cities and better utilising our existing infrastructure. When complete, Mustard Wharf will provide well-connected, high-quality housing which is essential for supporting the UK’s economic position and driving future growth.”
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 £1.29 trillion1 ($1.57tn) in
assets, 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 billion2 ($43.8bn) 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
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.
1LGIM internal data as at 30 June 2022. These figures include assets managed by LGIMA, an SEC Registered Investment Advisor. Data includes derivative positions.
2Source: LGIM Real Assets. AUM data as at 30 June 2022.
*at 13 Jan 2023
For professional clients only. Past performance is not a guide to the future. 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. Views expressed are of LGIM as at 12 January 2023. The Information in this document (a) is for information purposes only and we are not soliciting any action based on it, and (b) is not a recommendation to buy or sell securities or pursue a particular investment strategy; and (c) is not investment, legal, regulatory or tax advice. Legal & General Investment Management Limited. Registered in England and Wales No. 02091894. Registered Office: One Coleman Street, London, EC2R 5AA. Authorised and regulated by the Financial Conduct Authority, No. 119272.
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.
*at 31 Jun 2021