A partnership created by UK workplace pension scheme NEST, UK insurer Legal & General (L&G) and Dutch pension fund manager PGGM to invest in UK rental housing development has acquired its first site.
The partnership has acquired the site in Manchester’s New Jackson neighbourhood of Deansgate for a 51-storey build-to-rent project, to be developed in partnership with UK developer Renaker.
L&G already owns the adjacent North and West Towers in Deansgate Square.
Dan Batterton, head of residential, asset management at L&G, said: “This partnership demonstrates how investment from domestic pension schemes as well as international private capital can support the UK government’s push to boost investment into productive assets, accelerate growth and deliver pensions savings.
“We’ve been highly selective when exploring potential sites, and the outstanding characteristics of this development reflect this rigorous and detailed process. With a thriving economy and a rising number of professionals working and aspiring to live in the city centre, the rental market in Manchester is robust.”
Matthew Forward, senior investment manager for real estate at NEST, said: “We’re pleased to embark on this new partnership [with L&G and PGGM] with such an exciting project. It’s a fantastic opportunity right in the heart of Manchester, providing much needed, high-quality rental properties for a growing city.
“We look forward to expanding our portfolio with more UK sites, complementing the £3bn (€3.6bn) we’ve already directly invested in UK real estate.”
Dirk Bootsma, senior investment manager of private real estate at PGGM, said: “The acquisition of F1 in Manchester is the next step of our long-term partnership with L&G. This is a great example of our ambition and commitment to deliver strong social and financial returns for the participants of Pension fund 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.”
Daren Whitaker, chairman of UK developer Renaker, said: “We are delighted to have reached an agreement on this new and important addition to New Jackson and to build on an already established and successful relationship with L&G.
“We look forward to delivering this iconic new development and 494 high quality new homes on behalf of the partnership.”
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