Legal & General has acquired a development site for its largest ever build-to-rent scheme in London, creating around 1,000 new homes and 8,000 m2 of commercial space.
The project will occupy two adjacent plots in Wandsworth close to the suburban railway station, with an anticipated gross development cost of £500 mln (€576 mln). The scheme has been jointly acquired by the Legal & General BTR Fund, Dutch pension fund manager PGGM and Legal & General Capital.
As part of the project, the station will be upgraded with a new entrance to the platforms.
L&G's first BTR scheme in London, Blackhorse Mills in Walthamstow, is opening in the autumn. The company has also bought development sites for housing this year in Chelmsford, a commuter town in south-east England, and in Glasgow's Buchanan Wharf regeneration area.
Wandsworth has an anticipated shortfall of 2,310 new homes per year, according to the most recent London Plan.
Dan Batterton, head of build-to-rent at LGIM Real Assets, said: 'The location is highly desirable for renters and, with 1,000 units planned for the site, demonstrates Legal & General’s ambition to make a real impact on the delivery of new homes within the UK.'
Paul Miller, MD principal investing at Legal & General Capital, said: 'As renting continues to become a tenure of choice in the UK, the delivery of high density, high quality developments with vibrant communities is becoming more and more important. To do this, we need to deliver schemes which offer well-connected housing options, which are carefully integrated into the public realm, maximising our existing infrastructure and supporting economic growth.'
Mathieu Elshout, senior director private real estate at PGGM, added: 'As a responsible investor of Dutch pension capital, we are delighted to be partnering with Legal & General on this flagship scheme, delivering quality and affordable homes for elective renters and helping to tackle London’s growing housing crisis.'
