Legal & General is planning to invest a further £2.5bn (€2.9bn) of pension money into UK build-to-Rent (BTR) projects over the next five years.
Legal & General’s Retirement Institutional (LGRI) business – investing with the support of LGIM Real Assets – expects to invest defined benefit schemes’ retirement funds into the residential projects to create more than 7,000 new homes.
Last year, LGRI invested over £500m on the development of four BTR schemes in Stratford, Hove, Southampton and Lewisham.
Andrew Kail, CEO at Legal & General Retirement Institutional, said: “Through investing pension funds into BTR schemes, we can invest into developments that contribute to the regeneration of cities all around the country and support the UK economy.
“Today’s announcement showcases our commitment to creating thousands of high-quality, sustainable homes for communities that need them most. This is Inclusive Capitalism at its best – by investing in the real economy, generating returns to pay pensions and create a better society for us all.”
Dan Batterton, head of BTR at Legal & General Investment Management Real Assets, said: “Following successful investments in 2021 and our long-term track record in the development and operation of BTR schemes, we are delighted that LGR’s commitment to expand its investment allows us to grow our mission and have a greater impact on the supply of high-quality rental housing in the UK.
“Within five years, the Legal & General Group will have committed a total of at least £5bn to the sector, providing 15,000 purpose-built BTR homes.”
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