A UK rental housing investment partnership between insurer Legal & General (L&G), Dutch pension fund manager PGGM and UK workplace pension scheme NEST has acquired a London site for a £350m (€401m) project.
The Access Development Partnership (ADP) has acquired a six‑acre brownfield site between Clapham, Stockwell and Brixton, all in the south of the capital, from the UK’s National Health Service (NHS) for the build-to-rent project
The 700-home scheme, including private and affordable homes, will be operated by L&G on completion.
The NHS intends to use the sale proceeds to fund modern healthcare projects, including the New Douglas Bennett House at Denmark Hill, which will house services relocating from Lambeth Hospital when it opens later this year.
Dan Batterton, head of housing, asset management at L&G, said: “The redevelopment of the Lambeth Hospital site is a flagship example of the power of pension capital to address the chronic lack of housing supply by delivering large-scale schemes in the areas that need them most, whilst also meeting the investment needs of our pension fund clients.
“Underpinned by long‑dated institutional capital, L&G is able to look beyond short‑term market cycles and commit to multi‑phase regeneration, giving partners and local authorities confidence in delivery at scale over the longer term.”
Jane Bailey, chair, South London and Maudsley NHS Foundation Trust, said: “This is incredibly good news that will mean a host of benefits for not only the provision of mental health services locally but also the wider community.
“This is a wonderful opportunity to invest and transform for both the Trust and the local community. I know from speaking with colleagues how important this decision is and what it means for us as a Trust in allowing us to move forward.”
Dirk Bootsma, senior director, private real estate, PGGM, said: “The acquisition of the Lambeth Hospital site is a great addition to our residential development partnership with L&G.
“This underlines our commitment to deliver strong financial returns for the participants of our client [Pensioenfonds] Zorg en Welzijn (PFZW). We see the social value of realising new, high-quality rental housing as an additional benefit that fits with the investment philosophy of PFZW.”
Matthew Forward, senior real estate investment manager at NEST, said: “The scheme will support the provision of affordable homes for social rent, helping to encourage a broader mix of housing in Lambeth. At the same time, the all-electric design reflects our commitment to lower carbon living and to backing high-quality, future-ready homes.
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