Legal & General announces that it has exchanged contracts to acquire land in the centre of Brighton in order to deliver the city’s first ever Build to Rent (BTR) development. This latest acquisition represents the seventh UK city to which it will bring its new rental offer.
31 Jan 2018
Legal & General is improving standards across the rental market by delivering high quality, well managed, specifically designed accommodation in urban locations where people want to live. This new level of service will cater for all types of residents’ needs, giving greater choice. This means that families could benefit from keeping their own pets, having a community around them and the occupational security of longer, more flexible tenancies.
Occupying a strong micro location within the centre of the city, it is 200 metres from Brighton train station which offers a quick mainline service to London stations. Subject to planning approval, the site which is currently occupied as industrial space will deliver 200 homes and up to 3,000 sq m of commercial space arranged as incubator space to support start-ups and SMEs. As such it offers the same employment ratio, but would alone meet the delivery of a third of Brighton’s annual housing target.
Legal & General is a major employer in the city. It is founder of the award winning SE-Assist fund growing social enterprises in Greater Brighton and provides financial education to schools in the Sussex area with its Every Day Money Programme which last year benefitted 544 students. A strong and established growth city, Brighton is continuing to experience a vast increase in the number of young professionals moving to the City and is one of the most talented labour pools in the South East, yet there remains a shortage of homes for its residents.
Dan Batterton, BTR Fund Manager at LGIM Real Assets, said: “Brighton is a vibrant city where people want to live and work. This acquisition represents a rare opportunity to acquire land in an unrivalled location and to deliver the first institutional-grade BTR scheme. We look forward to working with the Council to support Brighton’s talented workforce with the homes they deserve.”
Mathieu Elshout, Senior Director Private Real Estate at PGGM, commented: “Our successful venture with Legal & General continues to materialise at pace through a range of BTR-development programmes across the UK. This is in line with our ambition to build long-term partnerships with prominent local real estate players. In these partnerships we focus on City’s like Brighton which represent strong economic regions with significant potential for further growth. Brighton has a severe housing shortage and our investment will help address this by creating a highly sustainable and high-quality BTR offer for the City.”
James Lidgate, CEO at Legal & General Homes, added: “Brighton is a thriving City with a hugely talented workforce. The UK needs urban centres that are fit for purpose and can support a creative, sustainable community like Brighton. Our BTR pipeline is growing at pace and it is exciting to see the impact that our developments are making to our UK cities.”
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. Through the creation of a BTR asset class, it is looking to use its sources of long term capital to help address the chronic long term lack of supply of housing and meet the increasing demand for affordable, quality rental accommodation. It now has sites in Leeds, Bristol, Bath, Walthamstow, Birmingham, Salford and Brighton.
PGGM is a cooperative Dutch pension fund service provider. Institutional clients are offered: asset management, pension fund management, policy advice and management support. On December 31, 2017 PGGM had EUR 218 billion in assets under management and was administrating pensions of 3 million participants. Around 725,000 workers in the Dutch healthcare are connected to PGGM&CO, our members organization. Either alone or together with strategic partners, PGGM develops future solutions by linking together pension, care, housing and work.
Legal & General in Housing
A natural evolution and fit for its multi-tenure housing investment strategy, Legal & General has been involved in supply side housing activities for nearly 20 years. These include:
It is also a significant investor in social housing, care homes and student accommodation. This holistic approach provides Legal & General with the mechanisms to deliver high quality returns throughout market cycles by pivoting investment to where the need is greatest.
James Lidgate, CEO at Legal & General Homes: The UK needs urban centres that are fit for purpose and can support a creative, sustainable community like Brighton.
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)
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 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