Insurance group Legal & General has made its first investment in the private rented sector (PRS), after acquiring a £25m regeneration site in north London with plans to build 300 PRS flats in Walthamstow.
(Image shows Walthamstow town hall)
LGC director of investments Laura Mason told Construction News that this “will be the first of many” PRS deals for the company, and confirmed the company’s ambitions to invest up to a £1bn in the sector.
The “PRS fits our investment objectives extremely well,” she added.
“We are creating new assets for Legal & General that generate a long term inflation linked income which is natural fit for our balance sheet.”
Legal & General Property’s managing director Bill Hughes said that, “with a housing supply crisis, it was important to focus on purpose-built build to rent investments of scale.”
Legal & General is focused on committing capital to housing more broadly and its investments include Cala Homes, which recently acquired Banner Homes.
L&G Capital told Reuters the news agency that it had invested 4.6 billion pounds in UK direct investments and infrastructure over the past couple of years and that it would allocate 1.5 billion pounds to a new British fund for infrastructure projects and seek external financing to expand its size to 15 billion pounds.
The firm has said: Build-to-Let is “a key part of solving the housing supply crisis” which appeals to investors because it allows a scale of construction and letting that delivers “management efficiency and a high standard of customer experience.”
The Walthamstow development will be built and managed by Legal & General Property, on behalf of Legal & General Capital.
— LandlordZONE (@LandlordZONE) February 27, 2015