UK railways pension scheme Railpen is funding a £92m (€107m) build-to-rent development project in London.

The £35bn pension scheme said it has agreed with real estate specialists Revenue + Capital and developer Fifth Capital to fund the development of 198 apartments at Trocoll House in Barking.

Railpen has acquired the land for the project from Revenue + Capital with a 50-year lease to be granted to the London Borough of Barking & Dagenham upon practical completion in 2025.

The deal will provide Railpen members with an economic asset that provides secure, predictable, inflation-linked cash flow, Railpen said.

Julian Allport, investment manager at Railpen, said: “We are pleased to have agreed this deal with Fifth Capital for the development of Trocoll House.

“The build to rent sector has been resilient throughout the pandemic, delivering strong investment returns. We look forward to being a long-term partner of Barking & Dagenham Council.”

Richard Walsh, the founder of Revenue + Capital, said with construction due to start this year and expected completion of 2025, this is going to help Barking & Dagenham “realise its vision of regenerating the area around Barking station and this, in turn, will increase tax receipts and help improve the quality of life for local residents”.

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