Legal & General Investment Management (LGIM) Real Assets has raised a further £170m (€199.7m) for its UK private-rented sector (PRS) strategy.

The new capital takes its total investment capability for build-to-rent to £1bn.

Dutch pension fund manager PGGM this year joined Legal & General Capital in a partnership to invest £600m in the construction of 3,000 homes in the UK.

The new capital includes a “significant commitment” from an Aon Hewitt client.

James Lidgate, director of housing at Legal & General Capital, added: “There is a shortage in all types of housing tenure in the UK, and Legal & General Capital will deploy long-term investment capital with external partners, or with LGIM Real Assets, to deliver modern, energy-efficient homes.”

The strategy has 1,000 UK homes under construction or in planning in Bristol, Salford and Walthamstow, with a pipeline of projects in Birmingham, Leeds and London.

The venture’s Salford site was bought from developer English Cities Fund in April this year.

Read more on the progress of PRS in the UK in the November/December edition of IPE Real Estate