LOVELL PARTNERSHIPS and Legal & General (L&G) Affordable Homes (Legal & General) have formed a pioneering collaboration to increase the delivery of affordable homes and mixed tenure sites.
7 Mar 2022
The partners have committed to deliver a target of 3,000 multi-tenure properties across a five-year period, with all new housing forming part of its commitment to deliver homes which are operationally net zero carbon in from 2030.
Legal & General will focus on delivering new affordable homes, including shared ownership, social and affordable rent, and Lovell is bringing its open market and build expertise across all tenures. Furthermore, both organisations are looking to maximise opportunities for suburban build to rent, later living and off-site manufacturing, introducing their wider group resources.
The first scheme for the partnership will be The Junction, a brownfield site which has lain empty for over 20 years. The site will be brought back into economic use through the skills and investment of Lovell and L&G, alongside Brownfield Land Fund Investment from the West Midlands Combined Authority and Affordable Housing Investment from Homes England. The development will deliver 234 energy efficient new homes of which nearly 50% will be for affordable housing via Legal & General with the remainder for open market sale by Lovell.
Anette Simpson, Director of Development and Partnerships at Legal & General Affordable Homes: “Since launching three years ago, Legal & General Affordable Homes has deployed institutional capital at scale delivering affordable homes across the country. Our development pipeline is now over 7,000 homes.
Our new partnership with Lovell is a great example of how we collaborate with successful and ambitious partners to bring forward more affordable housing, combining resources to accelerate the delivery of derelict sites and make a real impact on housing provision. We hope to do more and more deals like this in future, as changes in Solvency II rules allow us to deploy further capital into this space. The Junction is an exemplar scheme to launch this new partnership, creating high quality homes which will have a significant social impact for the community of Oldbury.”
Mary Parsons, Regeneration and Partnerships Director for Lovell Partnerships: “There is strength in partnership and collaboration – this approach is essential to meet the ambitious growth and sustainability goals of Lovell and L&G, as well as to support local authorities in the face of high demand for quality homes.
Our work with L&G will mean sites are identified quickly with a combined pool of knowledge to then offer the optimum mix of tenures to drive both commercial and social value. Our aim is to invest for the long term and create not just the highest quality homes, but great places to live. This is already being demonstrated at our Fountain Lane development in Oldbury, now known as The Junction.”
Notes to editors
Established in 1836, Legal & General is one of the UK's leading financial services groups and a major global investor, with over £1.4 trillion in total assets under management* of which a third is international. We also provide powerful asset origination capabilities. Together, these underpin our leading retirement and protection solutions: we are a leading international player in pension risk transfer, in UK and US life insurance, and in UK 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 31 Dec 2021
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)