Legal & General Investment Management (LGIM) has purchased a Build To Rent (BTR) site in the centre of Leeds from London-listed property company U+I in partnership with CTP for an undisclosed sum.
The Mustard Wharf scheme, with a development value of £60 mln (€71 mln), has permission for 250 homes as well as 8,640 ft2 (800 m2) of commercial and amenity space.
'In our view, Mustard Wharf is the ideal location for a BTR scheme in Leeds,' commented Dan Batterton, BTR Fund Manager at LGIM Real Assets. 'It is close to major transport links and local amenities, and complements the wider regeneration of the local area, supporting job growth and the local economy over the long term. We are excited that we are going to create a new standard of rental accommodation and service in a thriving community.'
The investment in the scheme brings L&G’s total pipeline of BTR units to over 1,400 with an expected gross development value across the portfolio of £420 mln (€500 mln). Leeds will be the fifth UK city in its BTR strategy.
The firm expects to be able to begin construction in early 2018, with practical completion aimed for early 2020.
L&G’s total investment capability for the BTR sector currently stands at £1 bn (€1.2 bn), having raised capital from major pension funds for an open-ended BTR fund, as well as a £600 mln (€712 mln) joint venture investment by Legal & General Capital and Dutch pension investor PGGM.
Mathieu Elshout, senior director private real estate at PGGM, commented: 'PGGM Private Real Estate builds strategic partnerships all over the world. This acquisition demonstrates the success of our partnership with L&G, having already secured five UK City regeneration schemes for our joint venture since its start last year.'
Existing sites in Bristol, Bath and Walthamstow are making good progress, according to L&G, while its first scheme in Salford is due to welcome its first residents at the start of June.
LGIM is part of UK insurance group Legal & General.
